MiniMed, Medtronic’s diabetes spinoff, posted financial results on Friday showing double-digit revenue growth and a widening net loss.
MiniMed reported revenue of $790 million, a 15% increase year over year, for its fiscal third quarter, which ended in January. However, the company also reported a net loss of $119 million for the quarter, compared with a net loss of $10 million in the year-ago period.
The results predate MiniMed’s initial public offering in March. MiniMed kept about $309 million in proceeds from the IPO, according to the filing.
BTIG analyst Marie Thibault wrote in a research note that MiniMed’s revenue growth has been driven by sales of its latest automated insulin delivery system. The company is poised for continued growth with its Simplera Sync continuous glucose monitor, which received Food and Drug Administration approval last year, and its CGM partnership with Abbott.
MiniMed is also working on new insulin pumps. The company received FDA clearance in March for a smaller insulin pump, called MiniMed Flex, and is developing an insulin patch pump called MiniMed Fit. In a February earnings call, Medtronic CFO Thierry Piéton said the company plans to submit MiniMed Fit to the FDA by this fall.
MiniMed plans to report its first results as a standalone firm on June 3. Following the IPO, Medtronic had a roughly 90% share in the diabetes tech company. Medtronic plans to distribute all or part of its remaining equity interest in MiniMed as part of a planned split. Piéton said the company expects the separation to be complete by the end of the year.
