MiniMed (Nasdaq:MMED) announced today that it completed its previously announced initial public offering (IPO).
Shares of MMED began trading on Friday, March 6, following the pricing of the IPO that day. They closed today, March 9, down 2.7% at $18 apiece.
The Medtronic Diabetes unit priced its IPO at $20 per share, offering 28 million shares of common stock, amounting to $560 million. With the addition of an option to purchase more shares, the total could have reached $644 million, but, according to an SEC filing today, it appears that the option was not exercised. The company said in a news release that net proceeds totaled approximately $538 million after deducting underwriting discounts and commissions and estimated offering expenses.
MiniMed said that it retained $309 million of the net proceeds from the IPO. As of today, it has approximately $350 million in cash on hand. It plans to use that cash for general corporate purposes and to repay intercompany debt owed to Medtronic. As a result of the IPO, Medtronic currently owns approximately 90.03% of the outstanding shares of common stock. That was the total expected if the underwriters didn’t exercise the option to buy more shares.
Prior to the IPO, MiniMed was a wholly owned subsidiary of Medtronic. Before and in connection with the IPO, it entered into a series of transactions with Medtronic. Under these transactions, Medtronic transferred the assets and liabilities of its Diabetes business to MiniMed and MiniMed issued shares of common stock to Medtronic.
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Additionally, in connection with the separation, Kangaroo US HoldCo 2, Inc. an indirect wholly owned subsidiary of Medtronic and certain of its subsidiaries entered into various agreements with Medtronic, providing a framework for MiniMed’s relationship with its soon-to-be-former parent company following the separation.
On March 5, MiniMed entered into a merger agreement with KH2, surviving a merger to move forward with the separation from Medtronic. The preferred path is a split-off.
In connection with the separation, Brian Sandstrom resigned from the company’s board of directors. MiniMed increased the board size from one to nine members, appointing Kevin E. Lofton as chair. Que Dallara, Glenn Eisenberg, D. Keith Grossman, Robert (Bob) A. Hopkins, Laura Mauri, Brett A. Wall, Matthew (Matt) R. Walter, and Timothy (Tim) A. Wicks were appointed as members of the board.
More about MiniMed as it clears the latest hurdle in its separation from Medtronic
In May 2025, Medtronic announced its intent to separate MiniMed into a standalone, publicly traded company. It forecast the completion of the separation within the next 18 months. The unit previously faced speculation related to a separation like this, as analysts even labeled it a candidate for sale or spin as far back as 2021.
Now a publicly traded company, MiniMed has a team of more than 8,000 global employees. It had previously delivered 8% of Medtronic’s annual revenue and 4% of the company’s segment operating profit in fiscal 2025. Que Dallara, the current EVP and unit president, serves as MiniMed’s CEO.
On the Medtronic third-quarter earnings call last month, company officials said the separation remains on track for completion at the end of this calendar year. The company also recently confirmed the layoffs of 81 employees as the separation takes shape, saying it wants to “ensure the right structure, capabilities, and scale for the business to succeed.”
As that process continues, the company looks to continue to bolster its portfolio. It submitted the next-generation MiniMed Flex to the FDA during the third quarter. The MiniMed Flex (8 series) pump is smaller than the previous-generation MiniMed 780G, allowing for more discrete placement while still using the same reservoirs and infusion sets. It will also work with both the Simplera Sync and Instinct sensors. The now-confirmed submission fell in line with the company’s plan to submit Flex to the FDA before the end of its fiscal year.
Meanwhile, Medtronic also began a U.S. pivotal study for Vivera, its third-generation algorithm for automated insulin delivery. It also remains set to submit its MiniMed Fit patch pump system to the FDA by the coming fall. The company also recently launched its integrated insulin delivery devices with the Instinct sensor made by Abbott.
