Latest news with #QueDallara
Yahoo
23-05-2025
- Business
- Yahoo
Medtronic Announces Separation From Diabetes Business, CEO Says it's 'In a Really Good Spot'
On Wednesday, Medtronic (NYSE:MDT) announced its intention to separate its diabetes business into a new, standalone company, to enhance focus on high-margin growth drivers for Medtronic and accelerate innovation for the new entity. The diabetes unit, which manufactures insulin pumps and other wearable devices, has recently returned to growth after struggling for several years due to regulatory and cybersecurity concerns. Medtronic CEO Geoff Martha stated the diabetes business is 'in a really good spot right now,' with 6 consecutive quarters of double-digit growth and a robust product pipeline. A surgeon in a modern operating room holding advanced medical devices with a sense of purpose and accuracy. The separation is expected to be completed within 18 months and will involve a series of capital markets transactions, with a preferred path of an IPO of less than 20% of the new company, followed by a split-off of the remaining 80%. Medtronic anticipates this move to be immediately accretive to its gross margin (~0.05%), operating margin (~1%), and earnings per share. The new entity, headquartered in California, will be led by Que Dallara, who is the current head of Medtronic's diabetes unit. While we acknowledge the potential of MDT to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than MDT and that has 100x upside potential, check out our report about the cheapest AI stock. READ NEXT: and . Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
22-05-2025
- Business
- Yahoo
Medtronic Announces Separation From Diabetes Business, CEO Says it's 'In a Really Good Spot'
On Wednesday, Medtronic (NYSE:MDT) announced its intention to separate its diabetes business into a new, standalone company, to enhance focus on high-margin growth drivers for Medtronic and accelerate innovation for the new entity. The diabetes unit, which manufactures insulin pumps and other wearable devices, has recently returned to growth after struggling for several years due to regulatory and cybersecurity concerns. Medtronic CEO Geoff Martha stated the diabetes business is 'in a really good spot right now,' with 6 consecutive quarters of double-digit growth and a robust product pipeline. A surgeon in a modern operating room holding advanced medical devices with a sense of purpose and accuracy. The separation is expected to be completed within 18 months and will involve a series of capital markets transactions, with a preferred path of an IPO of less than 20% of the new company, followed by a split-off of the remaining 80%. Medtronic anticipates this move to be immediately accretive to its gross margin (~0.05%), operating margin (~1%), and earnings per share. The new entity, headquartered in California, will be led by Que Dallara, who is the current head of Medtronic's diabetes unit. While we acknowledge the potential of MDT to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than MDT and that has 100x upside potential, check out our report about the cheapest AI stock. READ NEXT: and . Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
22-05-2025
- Business
- Yahoo
Medtronic is spinning off its diabetes business into standalone company
Medtronic announced Wednesday that it will spin off its diabetes business into a standalone company. The medical device giant, which is domiciled in Dublin, Ireland but has its main office in Fridley, Minnesota, confirmed that it is making the "strategic decision" to split off its diabetes arm to "create a more focused Medtronic, more simplified portfolio in high margin growth markets." The diabetes business currently employs 8,000 people and generates annual sales of around $2.5 billion, representing 8% of Medtronic revenue albeit only 4% of its operating profit. The split is anticipated to increase Medtronic's profit margins. The Wall Street Journal reports the move will allow the company to "focus on its more-profitable segments making devices for cardiovascular, neuroscience and medical surgery." While its diabetes business has been growing at a strong pace, it comes after a period of recovery when its MiniMed insulin pumps suffered product safety issues that sparked a warning from the Food and Drug Administration, and led to a delay in FDA clearance of MiniMed 780G pump, the Journal notes. The announcement came on a day the company said the tariff war enacted by the Trump administration could cost it between $200 million and $350 million over fiscal year 2026. The new company will be led by current Medtronic Diabetes president Que Dallara, and will be based in California, where Medtronic's diabetes business is currently located. "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." The spinoff is expected to be completed in 18 months.
Time of India
21-05-2025
- Business
- Time of India
Medtronic to separate diabetes business into standalone company
Bengaluru: Medical device maker Medtronic said on Wednesday it plans to separate its diabetes business, which houses its insulin pumps and other wearable devices, into a stand-alone company. The new company will be headed by Que Dallara, the current chief of Medtronic's diabetes division , and will house about 8,000 employees and be headquartered in Northridge, California. The diabetes unit has recently struggled after a 2021 warning by regulators about the company's MiniMed 600 insulin pumps. The spin off would allow Medtronic to focus on more profitable businesses such as heart devices , its biggest revenue driver. The spin off is expected to be complete within the next 18 months through a series of capital markets deals, with a preferred path of an initial public offering and subsequent split-off. The separation was first reported by the Wall Street Journal earlier on Wednesday. In 2022, the U.S. Food and Drug Administration flagged a cybersecurity risk for the MiniMed 600 Series insulin pump system, cautioning that the device was susceptible to cyberattacks that could potentially disrupt insulin delivery. The decision to separate the diabetes business follows years of restructuring efforts, which included a delay in the FDA clearance for the MiniMed 780G insulin pump until 2023. Separately, the company posted an adjusted profit of $1.62 per share for the fourth quarter ended April 25, ahead of Wall Street estimates of $1.58 per share, according to LSEG data. Its revenue of $8.93 billion also beat estimates of $8.82 billion, driven by sales of both heart devices and diabetes devices. Shares in the Ireland-based company were up marginally in pre-market trading.
Reuters
21-05-2025
- Business
- Reuters
Medtronic to separate diabetes business, WSJ reports
May 21 (Reuters) - Medical device maker Medtronic (MDT.N), opens new tab plans to separate its diabetes business into a stand-alone company, the Wall Street Journal reported on Wednesday, citing people familiar with the matter. The new company, led by the head of Medtronic's diabetes division Que Dallara, will have around 8,000 employees and be based in Northridge, California, the report said. The separation is expected to be completed within 18 months, the paper added. Medtronics did not immediately respond to Reuters request for comment. Medtronic's diabetes business, which generated $2.5 billion in sales in the fiscal year ended April 2024, has been a focus of turnaround efforts by the company after it received a warning letter from the U.S. Food and Drug Administration in 2021 regarding product safety issues.
