Medtronic's MiniMed division, a key player in diabetes care technology, is set to launch its U.S. initial public offering, eyeing an impressive valuation nearing $7.9 billion. This strategic move is part of Medtronic's broader initiative to streamline its operations by separating its diabetes business, allowing it to function as an independent entity focused solely on diabetes technology. The IPO involves offering 28 million shares at a price range of $25 to $28 each, with the goal of raising up to $784 million. This separation is anticipated to draw in investors keen on specialized exposure to the rapidly evolving diabetes technology sector, even as MiniMed navigates its recent history of net losses, emphasizing the critical need for a solid profitability roadmap to satisfy potential investors.
MiniMed Seeks Independence in Landmark IPO
In a significant development for the medical device industry, Medtronic's MiniMed Group, based in Northridge, California, declared its intention to achieve an estimated valuation of up to $7.86 billion through its U.S. initial public offering. This announcement, made on Tuesday, February 24, 2026, marks a pivotal step in Medtronic's long-term plan to divest its diabetes care unit. MiniMed, renowned for its innovative insulin pumps, glucose monitoring systems, and sensors, aims to offer 28 million shares to the public, with an individual share price ranging from $25 to $28. This offering is projected to generate approximately $784 million in capital.
Industry experts, such as IPOX Research Associate Lukas Muehlbauer, noted that MiniMed is entering the market not as a nascent startup, but as an established enterprise with over four decades of experience in insulin pump manufacturing. This unique positioning is expected to appeal specifically to investors looking for dedicated investment opportunities in diabetes technology. Medtronic initially unveiled its plans last year to separate its diabetes business—its smallest revenue-generating segment—through an IPO followed by a split-off. This restructuring is designed to simplify Medtronic's diverse portfolio and sharpen its focus on high-growth, high-margin market segments. Illustrative of this strategy, Medtronic had previously spun off its kidney care portfolio into the Mozarc Medical joint venture in 2023 and exited the ventilator business in 2024 to enhance operational efficiency.
Medtronic's decision to separate MiniMed comes nearly 25 years after its initial acquisition of the business for approximately $3.3 billion. In recent years, MiniMed has faced scrutiny regarding quality management and cybersecurity concerns related to some of its devices. However, the unit has shown a strong resurgence, achieving revenue growth in recent quarters, largely attributed to advancements in its 780G insulin pump and sensor technologies. Despite this growth, Muehlbauer highlighted the challenges of independence, stating that MiniMed will no longer benefit from Medtronic's financial security net. With MiniMed having reported net losses for three consecutive years, a clear and credible path to profitability will be a crucial demand from investors.
Medtronic is scheduled to complete a subsequent split-off of MiniMed six months following the IPO. The financial titans leading this offering include Goldman Sachs, BofA Securities, Citigroup, and Morgan Stanley. MiniMed plans to be listed on the Nasdaq under the ticker symbol "MMED."
This strategic maneuver by Medtronic reflects a growing trend in the healthcare sector where large conglomerates are divesting non-core assets to unlock shareholder value and allow specialized units to thrive independently. For MiniMed, this IPO presents both a monumental opportunity to raise capital and gain market focus, and a significant challenge to demonstrate sustained profitability as a standalone entity. The market's reception to this offering will be a crucial indicator of investor confidence in pure-play diabetes technology ventures, underscoring the importance of innovation and robust financial performance in this vital healthcare segment.