Medtronic plc’s diabetes division, MiniMed Group, filed a Form S‑1 with the U.S. Securities and Exchange Commission on December 19, 2025, announcing a two‑phase separation that will create a standalone public company listed on Nasdaq under the ticker “MMED.” Goldman Sachs, Bank of America, Citigroup and Morgan Stanley were named lead bookrunners for the offering.
The separation will leave Medtronic with an 80.1 % stake in MiniMed, while the new entity will be funded through an IPO that will distribute the retained shares to existing Medtronic shareholders via a split‑off or similar mechanism. The IPO is the vehicle for the spin‑off, and the transaction is designed to unlock value for the diabetes business, which has grown steadily but has historically dragged on Medtronic’s overall margin profile.
MiniMed’s recent financials illustrate the unit’s growth and margin profile. In the six months ended October 24, 2025, the unit posted net sales of $1.48 billion and a net loss of $21 million, compared with $1.30 billion and a $23 million loss a year earlier. The full‑year 2025 revenue for MiniMed was $2.76 billion, up 10.7 % from the prior year, while operating margins fell from 30.9 % in FY19 to 15.8 % in FY25, reflecting the lower‑margin nature of the diabetes segment relative to Medtronic’s other businesses.
Medtronic’s own performance also supports the rationale for the spin‑off. The company reported worldwide revenue of $33.537 billion for FY25, a 3.6 % increase, and adjusted earnings per share of $1.62 for Q4, beating estimates. Analysts expect the separation to lift Medtronic’s adjusted gross margin by roughly 50 basis points and operating margin by about 100 basis points, as the lower‑margin diabetes unit is removed from the consolidated financials.
Strategically, the move allows Medtronic to concentrate on high‑margin, high‑growth areas such as pulsed‑field ablation and renal denervation, while giving MiniMed the flexibility to pursue its own growth initiatives and attract additional capital. “This marks a significant milestone in driving both Medtronic and the Diabetes business to achieve lasting value for 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.”
Que Dallara, CEO of MiniMed, added, “We are proud and grateful for our Medtronic chapter. It allowed us to build deep expertise, scale globally, and improve the lives of millions of people across more than 80 countries. Our goal is to accelerate the impact we can have as an independent company focused exclusively on helping insulin‑dependent people with diabetes experience more predictable control, greater freedom, and better days while achieving strong outcomes.”
Analysts have expressed mixed views on the transaction, with some maintaining a hold stance as they assess the valuation and potential upside of the newly independent MiniMed. The announcement is expected to influence future guidance and capital allocation decisions for both entities.
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