Medtronic to spin off its diabetes business
Medtronic has announced that it plans on turning its diabetes business into a separate publicly traded company. This standalone entity is expected to launch within the next 18 months with help from a series of capital market transactions and, preferably, an initial public offering followed by a split-off transaction.
According to Medtronic, this move would allow one of the world’s largest medtech companies to simplify its portfolio and focus more exclusively in certain high-margin markets. Medtronic pointed to pulsed field ablation and renal denervation as two key areas of growth in the years ahead.
The new standalone diabetes company, meanwhile, would make innovation a priority as it embraces the various technologies involved with intensive insulin management. Medtronic’s diabetes business already includes more than 8,000 employees worldwide and represents 8% of Medtronic’s revenue in fiscal year 2025.
Que Dallara, executive vice president and president of Medtronic’s diabetes business, would become the standalone company’s new CEO.
“This marks a significant milestone in driving both Medtronic and the diabetes business to achieve lasting value for Medtronic, our shareholders, customers and patients,” Geoff Martha, chairman and CEO of Medtronic, said in a statement. “Active portfolio management is an important lever to delivering on our ongoing growth and success, and this decision shifts the Medtronic portfolio to have intense focus on our highest margin growth drivers where we have our strongest core competencies. I'm also excited about what the future holds for the diabetes business. Que's impressive track record in driving growth and innovation has set diabetes on a path to continued success, ensuring the needs of individuals with diabetes are met around the globe."
“I'm incredibly grateful to Geoff for his vision and commitment to investing in the Diabetes business—we wouldn't be where we are without his unwavering support,” added Dallara. “As we embark on this exciting new chapter, we celebrate the tireless efforts and dedication of our teams. Their passion and perseverance have brought us to this pivotal moment. Together, we're poised to transform lives, giving people the freedom to forget diabetes and live their best lives.”
Medtronic released a full presentation about the planned separation. Click here for the 17-page PDF.
Michael has more than 19 years of experience as a professional writer and editor. He has written at length about cardiology, radiology, artificial intelligence and other key healthcare topics.