Medtronic to Spin Off Diabetes Unit

Medtronic will separate its diabetes business into a standalone company, a move aimed at sharpening the company’s focus on high-margin, innovation-driven growth segments in the MedTech sector.

The new entity, now referred to as "New Diabetes Company," will operate independently with a dedicated management team and a shareholder base aligned to its financial profile. Medtronic expects the separation, which may occur through a series of capital markets transactions including a potential initial public offering (IPO) and subsequent split-off, to be completed within 18 months.

According to Medtronic, the transaction will simplify its portfolio while enhancing profitability metrics such as gross margin, operating margin, and earnings per share. The move is part of a broader strategy of ongoing portfolio management and capital allocation designed to strengthen Medtronic’s position in core therapeutic areas with scalable commercial and technological synergies.

Post-separation, Medtronic aims to build on momentum across its pipeline, including in pulsed field ablation, renal denervation, implantable tibial neuromodulation, and soft tissue robotics. These efforts are expected to support organic revenue growth in the mid-single digits or higher, while also enhancing earnings leverage.

The diabetes business has positioned itself as the only company offering a fully integrated ecosystem for intensive insulin management. This includes solutions for both Automated Insulin Delivery and Smart Multiple Daily Injections (Smart MDI). As a standalone entity, the company is expected to prioritize investment in its innovation pipeline and manufacturing automation, with long-term plans to improve margins and expand access to care.