I just read an article after Medtronic's earnings call - Why Medtronic plans to spin out its diabetes business. Quick Summary - Medtronic decided to spin out its diabetes business to focus on higher-margin segments like pulsed field ablation and renal denervation, as the diabetes unit operates differently, has lower margins, and benefits less from shared manufacturing and technology platforms.
Spine is the dog not barking.
What jumped out at me in this article is that Spine was not even mentioned. Medtronic's Spine business is a capital intensive and is losing market share to GloVasive and 200 small spine companies. Remember when Sofamor-Danek controlled 50% of the world spine market when Medtronic acquired them ?
Stryker gave up and spun out its Spine business. VB Spine acquired it in 2024.ZB gave up and spun out its Spine business by taking ZimVie public in 2022.Medtronic is next. Look for the spin out in 2026.
My prediction - Once the IPO markets come back, I look for Medtronic to take Spine public.
Medtronic's financial performance by division.
Division
Q4 FY25 Revenue Growth (Reported)
Q4 FY25 Revenue Growth (Organic)
FY25 Revenue Growth (Reported)
FY25 Revenue...
