Medtronic (NYSE:MDT) said this week that it realigned its diabetes business to focus on "transforming diabetes care," according to CEO Omar Ishrak.
Ishrak told analysts during a conference call this week that Fridley, Minn.-based Medtronic divided the diabetes business into 3 segments during its fiscal 2nd quarter.
The 1st segment, intensive insulin management, will concentrate on Type I and intensive Type II diabetes management, Ishrak said. Type I diabetics don’t product enough insulin to control their blood sugar levels. Type II diabetes, also known as insulin-dependent diabetes or adult onset diabetes, involves patients who stop responding to insulin.
Ishrak said Medtronic’s 2nd diabetes division is aimed at non-intensive Type II diabetes therapies "across the diabetes care continuum." The 3rd division, diabetes service and solutions, "will focus on improving their customer experience by bringing together data management and customer support solutions, including consumables, supplies and financial services," he said.
"We believe that collectively these businesses can leverage Medtronic’s technology and services to expand access, integrate care and improve outcomes, collaborating with patients, providers, and peers to change the management of diabetes," Ishrak said during the call discussing Medtronic’s fiscal 2nd-quarter results.
"The genesis of the structure is really for us to become a much more holistic diabetes company, not just a Type I pump-and-sensor company, but a true global diabetes care organization. And that’s really the impetus behind the organizational changes," added investor relations vice president Jeff Warren. "If you take a look at the 2 business units that we’ve created, the 1st 1, the intensive insulin management, this is really our core business where we’re going after the Type I patient and the intensive Type II with products and solutions. The 2nd 1, the non-intensive diabetes therapy business, is really our step into Type II in a broad way. And this starts with the Sanofi (NYSE:SNY) partnership, but I think you’ll see from us that it’s going to extend.
"And with Sanofi, I think, we’ve got some really innovative thing on the horizon that we’re both excited about. And then service and solution, this I think, absolutely can leverage Cardiocom. There is asset both within diabetes, with CareLink and across Medtronic with Cardiocom, that can be leveraged as we think about patient management and data management. And you’ll see some additional activity from us along these lines later this year."
Medtronic may also look to acquisitions to build out the non-intensive and service & solutions portions of its diabetes business, Warren said.
