Medtronic to split off diabetes biz

GALWAY, Ireland – Medtronic has announced it intends to separate its diabetes business, which represented 8% of revenue and 4% of segment operating profit in fiscal year 2025, into a new standalone company. 

The new diabetes company will be a leading, scaled direct-to-consumer diabetes business uniquely positioned to commercialize a complete intensive insulin management ecosystem, Medtronic says. 

"This marks a significant milestone in driving both Medtronic and the diabetes business to achieve lasting value for Medtronic, our shareholders, customers and patients," said Geoff Martha, chairman and CEO of Medtronic. "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." 

Medtronic says the separation is expected to enable more focused investment into the new diabetes company's pipeline, as well as manufacturing scale and automation, positioning the company for success in automated insulin delivery and Smart MDI, while driving margin expansion over time. 

Que Dallara, current executive vice president and president of Medtronic Diabetes, which comprises 8,000 employees worldwide, will become CEO of the new diabetes company. 

"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," said 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." 

The separation is expected to be completed within 18 months through a series of capital markets transactions, with a preferred path of an initial public offering and subsequent split-off.