Medtronic's Diabetes Business Prepares for Spinoff, Launches New Products
Medtronic's diabetes business is gearing up for a significant transformation as it prepares to spin off into a standalone company, MiniMed, while simultaneously launching new products and expanding partnerships in the competitive diabetes care market.
Diabetes Unit Turnaround and Spinoff Plans
Que Dallara, who joined Medtronic in 2022 to lead the diabetes business, has been instrumental in turning around the unit's performance. Under her leadership, the company has resolved an FDA warning letter, improved U.S. sales, and focused on long-term innovation. Dallara, who will become CEO of MiniMed after the spinoff, emphasized three key priorities: clearing regulatory hurdles, meeting financial commitments, and investing in innovation.
The decision to spin off the diabetes business comes as Medtronic aims to allow both entities to focus on their respective strengths. Dallara explained, "It's a win-win for Medtronic, as well as the diabetes business, because it helps both businesses focus." The spinoff process is progressing well, with the team executing on pipeline developments while simultaneously preparing for independent operations.
New Product Launches and Partnerships
Medtronic's diabetes unit has been actively expanding its product portfolio. This week, the company launched two new continuous glucose monitors (CGMs):
- Instinct: A CGM developed in partnership with Abbott, designed to work with Medtronic's insulin pumps.
- Simplera Sync: Medtronic's own CGM sensor, rolled out in the U.S. market.
The company also received an expanded label for its 780G insulin pump system, allowing integration with Abbott's CGM. This partnership aims to provide more options for patients, particularly those with Type 2 diabetes.
Future Pipeline and Innovation
Dallara highlighted several upcoming devices in Medtronic's diabetes care pipeline:
- MiniMed Flex: A next-generation durable pump with phone control capabilities, featuring a sleek design and advanced algorithm.
- MiniMed Fit: A patch pump currently in development, aimed at providing an alternative form factor for insulin delivery.
- MiniMed Go: A smart multiple daily injection (MDI) solution incorporating the InPen technology, launched in Europe with U.S. launch plans in the current fiscal year.
These innovations reflect Medtronic's strategy to cater to diverse patient preferences, from traditional durable pumps to patch pumps and smart MDI solutions.
As the diabetes unit prepares for its transition to an independent company, it continues to focus on innovation and market expansion. The spinoff is expected to allow MiniMed to operate with greater agility in the fast-paced and consumer-oriented diabetes care market, while Medtronic concentrates on its other growth drivers in cardiovascular, neuroscience, and surgical technologies.
References
- Que Dallara on Medtronic’s diabetes spinoff, pipeline and Abbott partnership
Dallara, president of Medtronic’s diabetes business, discussed the segment’s turnaround and why she sees a benefit in becoming a standalone firm.
Explore Further
What are the target market sizes for the Instinct and Simplera Sync continuous glucose monitors launched by Medtronic's diabetes unit?
How does Medtronic’s partnership with Abbott impact the competitive landscape in the continuous glucose monitoring market?
What are the highlights and potential advantages of the MiniMed Flex, Fit, and Go devices compared to existing insulin delivery solutions in the market?
What is the expected market reception and adoption rate of Medtronic’s 780G insulin pump system with its expanded label for Abbott CGM integration?
Who are the major competitors of Medtronic's diabetes unit in the continuous glucose monitoring and insulin pump sectors, and what is their current market share?