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NEW YORK - Medtronic plc (NYSE: MDT), a $113 billion healthcare giant with a "GREAT" financial health rating according to InvestingPro, announced Thursday that its planned diabetes business spinoff will be named MiniMed, reviving the original name of the diabetes technology company it acquired in 2001.
The name selection honors the 40-year legacy of the diabetes care business that was founded in 1983 by entrepreneur Alfred E. Mann, according to a press release statement from the healthcare technology company. The parent company has built a strong track record of shareholder returns, maintaining dividend payments for 49 consecutive years with a current yield of 3.2%.
"We’re thrilled to honor this rich 40-year legacy with a name that carries deep meaning and trust," said Que Dallara, current EVP and President of Medtronic Diabetes and Chief Executive Officer designate of MiniMed.
The diabetes business, based in Northridge, California, employs more than 8,000 people focused on developing technologies for diabetes management. The unit produces devices including the MiniMed 780G system, an automated insulin delivery system for type 1 diabetes patients.
Medtronic is targeting completion of the planned separation within 18 months of its initial announcement, subject to customary conditions and legal requirements. While the company currently prefers a split-off structure, a final decision has not been reached, and the separation may occur through various capital markets transactions.
The spinoff is part of Medtronic’s strategy to streamline its operations. The company noted that the separation remains subject to consultations with works councils and other employee representative bodies.
The planned standalone diabetes company will maintain its focus on technologies that help manage blood glucose levels and reduce the burden of diabetes care, according to the company statement. With Medtronic’s current revenue of $33.5 billion and healthy gross margins of 65.5%, the spinoff comes at a time when the company appears fairly valued based on InvestingPro’s comprehensive Fair Value analysis. Investors seeking deeper insights into Medtronic’s valuation and growth prospects can access the detailed Pro Research Report, available exclusively to InvestingPro subscribers.
In other recent news, Medtronic, Inc. reported its fiscal fourth-quarter 2025 results, which included plans to spin off its Diabetes business into a separate public entity. This division accounts for approximately 8% of the company’s total revenue. Following this announcement, Needham analysts maintained a Hold rating on Medtronic stock, while Truist Securities adjusted its price target to $92, reflecting a positive response to the company’s organic revenue growth of 5.4%, although margins did not meet expectations. RBC Capital Markets also revised its price target for Medtronic to $101, maintaining an Outperform rating, citing the company’s Cardiovascular division’s strong performance as a factor. Stifel analysts held a Hold rating with a $87 target, noting potential tariff pressures impacting the company’s fiscal 2026 outlook.
Boston Scientific Corporation announced it would halt worldwide sales of its ACURATE neo2 and ACURATE Prime products due to increased clinical and regulatory requirements. Despite this, Evercore ISI maintained its Outperform rating and $112 price target, with the company expecting to meet its second-quarter and full-year 2025 sales and earnings guidance. The discontinuation of these products may have implications for competitors like Abbott Laboratories and Medtronic, which offer similar products.
Overall, these developments reflect strategic shifts and regulatory challenges impacting major players in the medical technology industry. Medtronic’s planned separation of its Diabetes business and Boston Scientific’s product discontinuation highlight the dynamic nature of the sector. Analysts’ ratings and adjustments provide a nuanced view of the companies’ prospects amid these changes.
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