Dive Brief:
- Medtronic on Tuesday priced a planned initial public offering for its MiniMed diabetes spinoff at up to $784 million.
- MiniMed plans to price its IPO between $25 and $28 per share across 28 million shares. Underwriters will also have the option to buy an additional 4.2 million shares at the IPO price.
- Medtronic first announced plans to spin out its diabetes business into a separate, publicly traded company in May. The new firm would be the only company in the market that sells both insulin pumps and continuous glucose monitors.
Dive Insight:
MiniMed expects to have an advantage as the only company that makes all of the parts of advanced diabetes therapy solutions. While competitors like Dexcom and Insulet may specialize in making CGMs or insulin pumps and dosing algorithms, MiniMed claims its presence across all of these components can make for a better user experience.
MinMed laid out new and upcoming devices in a prospectus filed Tuesday. Last year, Medtronic received Food and Drug Administration approval to pair its latest CGM, Simplera Sync, with insulin pumps. The company also received a label expansion that would allow it to pair its MiniMed 780G pump with a sensor made by Abbott for Medtronic, called Instinct.
MiniMed is also working on new insulin pumps, including the MiniMed Flex, which has a smaller form factor. The company has already submitted Flex for FDA approval and plans to file for a CE mark by the end of the first quarter.
The diabetes firm is also developing a patch pump, called MiniMed Fit, which it plans to submit for FDA approval by this fall.
MiniMed will trade on the Nasdaq under the stock ticker “MMED.” After the separation, the company expects to have about $350 million in cash on hand to go toward general corporate purposes, according to a prospectus. The remainder of the funds will be used to repay debt owed to Medtronic and as consideration for assets transferred to MiniMed. Medtronic will hold roughly 90% of the company after the IPO is completed.
MiniMed generated $2.7 billion in revenue in its fiscal 2025 and reported a net loss of $198 million, according to the prospectus.
