Medtronic to separate its patient monitoring and respiratory interventions businesses

Medtronic Plc MDT, +0.98% said Monday it’s planning to separate its patient monitoring and respiratory interventions businesses in a move aimed at better positioning both the NewCo and Medtronic for long-term success. The Dublin-based medical device company said the business had about $2.2 billion in revenue in fiscal 2022. It expects the separation to be completed in the next 12 to 18 months. “Independently, NewCo will be a leading connected care company with a compelling leadership position, attractive margins, and potential for growth acceleration with increased investment and dedicated capital allocation,” Chief Executive Geoff Martha said in a statement. “Looking ahead, we remain focused on active portfolio management with an ongoing process of evaluating potential additions and subtractions to further accelerate Medtronic’s growth over the long-term.” Once the move is completed, the company is expecting modestly faster organic revenue growth and an increased weighted average market growth rate. The combined business has a team of more than 8,000 employees worldwide. Medtronic stock rose 1.2% premarket and is down 19.5% in the year to date, while the S&P 500 SPX, +2.37% has fallen 21%.