Smith+Nephew confirmed that discussions with Johnson & Johnson over a potential combination with its DePuy Synthes orthopaedics unit have ended. Reuters reported that Smith+Nephew had approached Johnson & Johnson earlier this year with an offer valuing the U.S. company’s hip-and-knee replacement business at as much as $22 billion, nearly double Smith+Nephew’s £9.4 billion market value. The talks broke down over who would lead the enlarged group, according to a person familiar with the matter. Smith+Nephew’s third-quarter revenue rose 3.4% to $1.55 billion on both an underlying and reported basis, but weaker-than-expected growth in Orthopaedics, particularly U.S. Hips and Knees, prompted it to cut full-year revenue growth guidance to around 3% from around 4%. Trading profit growth guidance fell to around 4% from around 8%, with trading profit expected at approximately $1.25 billion versus a previous estimate of around $1.3 billion. Free cash flow guidance was reduced to around $750 million from around $800 million, while the company maintained its approximately 95% trading cash conversion target. Orthopaedics accounts for about 40% of annual sales, and Smith+Nephew expects its slowdown to continue through the fourth quarter. The company said it will keep exploring strategic options for the business. Its previously announced $500 million share buyback remained on track, with $250 million completed by the end of the third quarter. Shares fell 1.7% in early trading.