Medtronic today announced its intent to separate its diabetes business into a new standalone company.
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 (IPO) and subsequent split-off.
The new company will feature a scaled direct-to-consumer diabetes business—which Medtronic said is positioned as the only company to commercialize a complete intensive insulin management ecosystem. This separation is expected to enable more focused investment into the company's pipeline, as well as manufacturing scale and automation, while driving margin expansion over time.
Medtronic's diabetes business currently has more than 8,000 employees worldwide. Que Dallara, current EVP and president of Medtronic Diabetes, will become CEO of the new company.
"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. Que's impressive track record in driving growth and innovation has set Diabetes on a path to continued success, ensuring the needs of individuals with diabetes are met around the globe."
"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 diabetes business represented 8% of Medtronic revenue and 4% of Medtronic segment operating profit in fiscal year 2025.
