From Yahoo Finance: 2025-05-22 08:05:00

Medtronic plans to spin off its diabetes business into a standalone company to focus on insulin management devices. Shares fell 2.27% after the announcement. The split aims to create a more focused Medtronic for high margin growth markets.

The separation process is expected to be completed within 18 months through a series of capital market transactions. The new standalone diabetes business will be positioned as a scaled, direct-to-consumer company. This move will enable more focused investment in pipeline and manufacturing scale.

Medtronic’s diabetes business represents 8% of total revenues, with a significant year-over-year rise. However, recent operational losses were noted due to an FDA recall. The company held 6% and 7.3% market share in insulin delivery and glucose monitoring segments in 2024.

The diabetes unit has 8,000 employees globally and will be led by current executive vice president Que Dallara post-spinoff. Medtronic expects the separation to improve gross and operating margins while being immediately accretive to EPS. CEO Geoff Martha is optimistic about the future of the Diabetes business.

Read more: Medtronic to split diabetes business into separate entity, targets IPO