Medtronic to Spin Off Diabetes Division into Standalone Company

The separation will occur through a series of capital market transactions, with the preferred approach being an initial public offering followed by a split-off.
Medtronic announced its decision to spin off its diabetes business into a standalone company over the next 18 months.
The separation will occur through a series of capital market transactions, with the preferred approach being an initial public offering followed by a split-off.
The unit includes insulin pumps and other wearable devices and has been under regulatory scrutiny recently. In 2021, the U.S. Food and Drug Administration (FDA) issued a warning regarding Medtronic’s MiniMed 600 insulin pumps. In 2022, the FDA further flagged the MiniMed 600 Series for cybersecurity vulnerabilities that could interfere with insulin delivery.
Standalone Company to Be Headquartered in California
The new diabetes company will be led by Que Dallara, who currently heads the division. It will employ around 8,000 people and be based in Northridge, California.
The restructuring follows a period of setbacks, including delays in the FDA approval of the MiniMed 780G insulin pump, which was cleared only in 2023.
According to Medtronic, the spin-off is part of a broader strategy to sharpen its focus on core, high-performing business segments, particularly cardiovascular devices, which remain its most significant revenue contributor.
Q4 Earnings Reflect Growth in Core and Diabetes Segments
The company also reported financial results for the fourth quarter ending April 25. According to LSEG data, Medtronic posted an adjusted profit of $1.62 per share, exceeding Wall Street estimates of $1.58 per share. Revenue for the quarter stood at $8.93 billion, ahead of the expected $8.82 billion.
The company attributed the performance to increased sales in both its heart and diabetes device categories.
The Wall Street Journal initially reported on the development earlier in the day. Following the announcement, shares of the Ireland-based firm rose slightly in pre-market trading.
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