Medtronic Plans to Spin Off Diabetes Business into New Company

GALWAY, Ireland, May 21, 2025 /PRNewswire/ — Medtronic plc, a global leader in healthcare technology, announced its intent to spin off its Diabetes business into a new standalone company, dubbed the New Diabetes Company. This separation aims to enhance Medtronic’s focus on high-margin growth sectors.

The move, expected to be completed within 18 months, involves a series of capital markets transactions, predominantly an initial public offering (IPO) followed by a split-off. Medtronic’s chairman and CEO, Geoff Martha, expressed that this strategic decision will create a more focused Medtronic, with a simplified portfolio in high-margin markets.

The Diabetes business, which accounts for 8% of Medtronic’s revenue, is anticipated to unlock significant value for shareholders. The separation is projected to improve Medtronic’s adjusted gross margin by around 50 basis points and adjusted operating margins by roughly 100 basis points, leading to immediate earnings per share (EPS) accretion.

Medtronic plans for the New Diabetes Company to be an agile leader in direct-to-consumer diabetes management. Que Dallara, the current Executive Vice President and president of Medtronic Diabetes, will become the CEO of the new entity.

“This marks a significant milestone,” said Dallara. “Together, we’re poised to transform lives, giving people the freedom to forget diabetes and live their best lives.”

The independent company will start with over 8,000 employees and aims to focus on innovation in insulin management solutions. The transaction is designed to be tax-free for Medtronic shareholders and will include assets such as the employee base, product portfolio, and manufacturing facilities.

Goldman Sachs & Co. LLC and BofA Securities are advising Medtronic during this transition. Completion of the separation is subject to various customary approvals, including regulatory clearances and favorable market conditions.