MiniMed IPO: diabetes monitoring device maker goes public

Pre-IPO trading in shares of MiniMed Group, a diabetes monitoring device and technology company, has begun on the Freedom client trading system. Prior to its IPO, the company was part of Medtronic, one of the world's largest medical device providers; its listing marks an important step in the medical device maker's plans to spin off its diabetes business into a separate firm, Reuters notes. MiniMed securities will appear on the Nasdaq under the ticker MMED later on March 6. Click on the MMED ticker to participate.

MiniMed raised $560 million in an IPO. The company placed 28 million shares at $20 per paper, which was below the previously announced price range of $25-28 per unit. Based on the results of the IPO, the value of the entire company can be estimated at $5.6 billion, according to Bloomberg.

The listing was organized by Goldman Sachs, BofA Securities, Citigroup, Morgan Stanley, Barclays, Deutsche Bank Securities, Mizuho and Wells Fargo Securities.

The company, according to Medtronic's statement, has also granted the underwriters a 30-day option to purchase up to 4.2 million additional shares of MiniMed common stock at the initial public offering price, less underwriting discounts and commissions. Upon completion of the IPO, Medtronic is expected to own approximately 90.03% of MiniMed's shares, or 88.70% if the underwriters exercise the underwriters' over-allotment option in full

Medtronic announced plans to separate its diabetic business from the main business through an IPO procedure followed by a full separation in 2025. Such a decision one of the world's largest suppliers of medical equipment took almost 25 years after the purchase of this business for about $3.3 billion, indicates Reuters. Medtronic says the separation from the parent company will create the only player in the industry offering a complete "insulin management ecosystem," Fierce BioTech notes.

MiniMed will use the IPO proceeds partly for corporate purposes and, if there is a balance, to repay internal debt to the parent company, MiniMed said in its prospectus filed last December with the U.S. Securities and Exchange Commission (SEC).

Based in Northridge, California, MiniMed is in the business of creating technology to control diabetes. With more than 40 years of experience manufacturing insulin pumps, MiniMed is entering the market as an established business rather than a startup, notes IPOX Research analyst Lukas Muehlbauer (quoted by Reuters). Specifically, the company makes products such as glucose monitoring systems, smart insulin syringe pens and sensors, Reuters writes. As of May last year, Medtronic's diabetic division had more than 8,000 employees, according to a company statement.

In recent years, this division has faced regulatory complaints regarding quality control and cybersecurity issues with certain devices. The main complaints centered on defects in the retainer in the 600 series insulin pumps, which could cause the device to administer the wrong dose of insulin. This eventually led to the recall of millions of devices from the market. In terms of cybersecurity, vulnerabilities were discovered in the communication system between the pump and paired devices, which theoretically allowed hackers to remotely alter insulin dosage by intercepting radio signals. However, the business has returned to growth in recent quarters thanks to improvements in sensors and the 780G insulin pump (Medtronic's flagship automatic insulin administration system), Reuters notes.

For the six months ended October 24 last year, MiniMed recorded a net loss of $21 million on revenue of $1.5 billion, Bloomberg reports. Nevertheless, this shows a positive trend compared to the results for the same period last year, when with less revenue ($1.3 billion) the loss was at $23 million.

MiniMed's listing will add to the wave of healthcare IPOs. According to Bloomberg, last year companies in this sector raised $10.9 billion on U.S. exchanges - almost two-thirds more than in 2024.

As of October 2025, MiniMed's insulin pump user base exceeds 640,000, and usage of CGMs (small wearable devices that measure blood glucose - blood sugar - levels every few minutes) reached 65% in the six months ended October 24, 2025 - compared to 58% in the previous period, Freedom Finance analyst Alem Bektemirov pointed out. Approximately 83% of the company's total revenue, he estimates, is generated from CGM, software and services, reflecting the sustainability of MiniMed's recurring sales model.The average P/S (a multiple that reflects the ratio of the company's market price per share to revenue per share) of its peersMiniMed is 2.95x, the analyst noted, emphasizing that, thus, when comparing the publicly traded company to its peers, given MiniMed's 12-month revenue of $2.886 billion, Equity (the value of MiniMed's equity capital held by its shareholders) is $8.369 billion, or $29.8 per share, which is 12.46% above the upper bound of the previously announced offering price.

Bektemirov named market competition, price pressure and delays in the development of new products as the main risks for MiniMed's business.

"MiniMed's separation [from Medtronic] will allow the company to target investors interested in net investments specifically in diabetes technology," IPOX Research analyst Lukas Muehlbauer also noted(quoted by Reuters). "While the company has seen strong revenue growth, the downside of independence will be the loss of Medtronic's financial cushion. MiniMed has recorded net losses for three consecutive years, which means investors will demand a clear plan to reach profitability," Muehlbauer added.

_______________________

Freedom clients will be able to get access to Medtronic shares before the opening of the main exchange session. Trading will begin in the early pre-market format 2-3 hours before the opening of the U.S. exchanges (from 15:30-16:30 Astana time). To participate, click on the ticker MMED.

This article was AI-translated and verified by a human editor