Medtronic's MiniMed targets $7.9B valuation in IPO, lays off 81 employees

Medtronic's MiniMed Group said on Tuesday it was targeting up to $7.86 billion valuation in its U.S. initial public offering, marking a step forward in the medical device maker's plan to separate its diabetes business. The Northridge, California-based unit is seeking to raise up to $784 million in its IPO by offering 28 million shares priced between $25 and $28 apiece.

A Worker Adjustment and Retraining Notification (WARN) notice filed in California confirms the company's plans to lay off 81 employees at its Northridge facility. The notice states that Medtronic notified the state of the planned workforce reduction on Feb. 5, 2026, with layoffs planned to go into effect on April 7, 2026. The restructuring of operations affects engineering, IT, marketing and technician roles.

The unit, a heavyweight in diabetes care which makes products such as insulin pumps, glucose monitoring systems and sensors, has over 40 years of insulin pump manufacturing. MiniMed enters the market as an established business rather than a startup, and the separation allows the company to target investors seeking pure-play exposure to diabetes technology.

Medtronic said last year it planned to separate the diabetes business, its smallest segment by revenue, through an IPO and later split-off, aiming to simplify its portfolio and sharpen focus on high-margin growth markets. The company announced in May 2025 that it planned to separate the Diabetes unit into a standalone, publicly traded company. The move sought to create "a more focused Medtronic" with a more simplified portfolio in high-margin growth markets while creating an independent, scaled leader in diabetes.

Medtronic is expected to carry out a subsequent split-off of MiniMed six months after the IPO. The company expects to get the IPO-driven separation done by the end of the calendar year, with the overall process expected to complete within 18 months.

The medical device maker has also carved out its kidney care portfolio through the Mozarc Medical joint venture in 2023 and exited the ventilator business in 2024 to streamline operations. Medtronic's decision to separate MiniMed comes nearly 25 years after it bought the business in a nearly $3.3 billion deal.

The unit has contended with regulatory concerns over quality management and cybersecurity issues related to its certain devices in the last few years. It has, however, returned to growth in recent quarters helped by its 780G insulin pump and sensor improvements. Medtronic said earlier this week that it submitted the next-generation MiniMed Flex to the FDA for approval.

While the company has shown strong revenue growth, the trade-off of becoming a separate entity is the loss of Medtronic's financial safety net. MiniMed has posted net losses for three consecutive years, meaning investors will demand a clear path to profitability.

Goldman Sachs, BofA Securities, Citigroup and Morgan Stanley are the active bookrunners. MiniMed aims to list on the Nasdaq under the symbol "MMED".