Medtronic plc , a global leader in healthcare technology, has announced its intention to spin off its Diabetes business into a new standalone entity, the “New Diabetes Company.” This move is designed to create a more focused Medtronic and position the new company as a leading, independent diabetes care provider.
The separation is expected to be completed within 18 months through a series of capital market transactions, with an initial public offering (IPO) as the preferred route, followed by a potential split-off. The transaction is expected to enhance shareholder value by improving Medtronic’s gross and operating margins and earnings per share. Meanwhile, the New Diabetes Company will benefit from a financial profile aligned with its business focus.
Post-separation, Medtronic will sharpen its strategy around high-margin growth drivers, such as pulsed field ablation, renal denervation, implantable tibial neuromodulation, and soft tissue robotics. The streamlined portfolio is expected to support mid-single-digit or higher organic revenue growth and improved earnings leverage.
The New Diabetes Company will be uniquely positioned as the only company offering a comprehensive ecosystem for intensive insulin management. Its portfolio will include Automated Insulin Delivery systems and Smart Multiple Daily Injections (MDI). With focused investment in innovation, manufacturing scale, and automation, the new company aims for sustained growth and margin expansion.
Que Dallara, currently EVP and President of Medtronic Diabetes, will serve as CEO of the New Diabetes Company. The business consists of more than 8,000 employees worldwide, with a strong global commercial presence and capabilities across innovation, manufacturing, clinical operations, and quality systems.
“This marks a major milestone in unlocking long-term value for our shareholders and patients,” said Geoff Martha, Chairman and CEO of Medtronic. “Que’s leadership has driven significant progress in the Diabetes business, and I’m excited about its future as a standalone company.”
“I’m honored to lead this next chapter,” said Dallara. “Our team’s dedication has brought us to this moment, and together, we are ready to deliver transformative diabetes solutions that empower people to live their best lives.”