Medtronic, the global medtech leader, has officially announced plans to spin off its Diabetes business into an independent company. The newly created entity, tentatively named “New Diabetes Company,” will operate as a standalone firm focused on innovation in insulin management technologies. Medtronic’s leadership stated that this strategic move will enable the parent company to sharpen its focus on high-margin, core growth areas, while giving the Diabetes unit the autonomy to scale and evolve as a category leader.
“This marks a significant milestone in driving lasting value for Medtronic, our shareholders, customers, and patients,” said Geoff Martha, Chair and CEO of Medtronic. He emphasized that active portfolio management is key to sustainable growth and success. Que Dallara, currently Executive Vice President and President of the Diabetes business, has been appointed CEO of the new company. She lauded the commitment of the company’s teams and reaffirmed their mission to enhance the lives of people with diabetes around the globe.
IPO Path Planned; Focus to Remain on Cutting-Edge Diabetes Technology
The separation is expected to be completed within 18 months via capital market transactions, likely through an IPO followed by a split-off. Medtronic confirmed that the transaction is expected to be tax-free for shareholders under U.S. federal income tax laws. Once independent, New Diabetes Company aims to become a major direct-to-consumer player in diabetes care, with increased agility to invest in product development and automation.
Medtronic’s Diabetes d currently employs over 8,000 people globally and contributes approximately 8% of the company’s revenue and 4% of segment operating profit in fiscal 2025. The new structure is expected to unlock greater potential in areas such as automated insulin delivery and smart multiple daily injections (MDI). As a standalone entity, the Diabetes unit will be better positioned to deepen its manufacturing capabilities and accelerate its innovation pipeline.
In recent developments, the company advanced its partnership with Abbott by submitting an interoperable insulin pump for FDA approval, integrating Abbott’s FreeStyle Libre CGMs with Medtronic’s MiniMed 780G system, and InPen smart insulin pens. Additionally, Medtronic continues to expand its own CGM portfolio, receiving FDA approval last month for its Simplera Sync system, designed for use with the MiniMed 780G.
Market Analysts and Leadership React to the Move
Market analysts have largely welcomed the move. BTIG analysts Ryan Zimmerman and Iseult McMahon reiterated a “Neutral” rating on Medtronic, describing the Diabetes unit as previously a drag on profitability. They noted that diabetes care operates on a direct-to-consumer model that doesn’t align seamlessly with Medtronic’s business-to-business structure. With the separation, Medtronic is expected to be a more focused and less risky enterprise.
Leadership changes have already begun within the Diabetes division. Former Dexcom executive Laura Endres has been appointed head of the Americas, and ex-Moderna CMO Kate Cronin recently joined as chief marketing officer. Dallara reaffirmed the company’s vision: “This next chapter will allow us to accelerate technologies that provide more freedom and peace of mind to people with diabetes. Our mission will remain clear: to help people forget they have diabetes and live their best lives.”
