Medtronic’s diabetes arm, MiniMed Group, on Tuesday disclosed plans for a U.S. initial public offering that would value the company at up to $7.86 billion, a key step in Medtronic’s strategy to separate the business from its broader medical device operations.
The Northridge, California-based unit, known for insulin pumps, continuous glucose monitoring systems and related sensors, has filed to offer 28 million shares with a proposed price range of $25 to $28 per share. At the top end of that range the offering could raise as much as $784 million.
IPOX Research Associate Lukas Muehlbauer noted that MiniMed brings decades of manufacturing experience to the market, saying,
"With over 40 years of insulin pump manufacturing, MiniMed enters the market as an established business rather than a startup. The separation allows the company to target investors seeking pure-play exposure to diabetes technology,"underscoring the appeal to investors focused specifically on diabetes care technologies.
Medtronic announced last year that it intended to spin off its diabetes business through an IPO followed by a split-off, a move designed to simplify its corporate footprint and concentrate on higher-margin growth markets. The company has already taken steps to streamline its portfolio, including a carve-out of its kidney care assets via the Mozarc Medical joint venture in 2023 and an exit from the ventilator business in 2024.
The planned separation comes nearly 25 years after Medtronic acquired MiniMed in a transaction of about $3.3 billion. In recent years MiniMed has faced regulatory scrutiny related to quality management and cybersecurity vulnerabilities affecting some of its devices. Despite those challenges, the unit has returned to revenue growth in recent quarters, supported by enhancements to its 780G insulin pump and improvements to its sensor technology.
That growth, however, sits alongside financial strain: MiniMed has reported net losses for three consecutive years. Muehlbauer cautioned that while revenue performance has strengthened, the company will no longer benefit from Medtronic’s balance sheet once it becomes independent. He said,
"While the company has shown strong revenue growth, the trade-off of becoming a separate entity is the loss of Medtronic’s financial safety net. MiniMed has posted net losses for three consecutive years, meaning investors will demand a clear path to profitability,"pointing to investor focus on sustainable earnings and cash flow durability.
Medtronic intends to carry out a formal split-off about six months after the IPO. The offering is being led by Goldman Sachs, BofA Securities, Citigroup and Morgan Stanley, and MiniMed plans to list on the Nasdaq under the symbol MMED.
Context and next steps
The IPO will give public investors direct exposure to a specialist diabetes-technology company that has re-emerged onto a growth trajectory after addressing operational issues. The transaction also represents the latest phase of Medtronic’s portfolio reshaping following its 2023 and 2024 divestiture moves.