Medtronic and DaVita form new kidney care company

Medtronic (NYSE: MDT) and DaVita (NYSE: DVA) today announced their intention to form a new medical device company for kidney care.

The new, independent company – dubbed “NewCo” for now – aims to improve the treatment experience for patients and improve overall outcomes for kidney care patients.

According to a press release, the new company will bring together the capabilities of Medtronic as a health technology leader and the expertise of DaVita as a comprehensive renal care provider. The new company will focus on developing a wide range of new kidney care products and solutions, including future home products to make different dialysis treatments more accessible.

“This is an exciting time that will shape the future of kidney care,” Vene Mandapresident of Medtronic’s renal care solutions business and CEO of NewCo at closing, said in the release. “Our unique focus on end-to-end kidney health solutions will position this new company to make a measurable difference in the lives of more than three million kidney patients worldwide, a number that is expected to double over the next the next decade.

The new company will be co-owned by Medtronic and DaVita, each with equal interests, and led by an independent management team under the terms of the agreement. Medtronic’s renal care solutions business – which includes a current portfolio of renal access, acute therapies and chronic therapies – will be integrated into the new company alongside its product portfolio and R&D teams and facilities. of global manufacture.

Medtronic will not include any other products or portfolios, including those in the AV access portfolio in the peripheral vascular health sector, the company said. The two companies plan to provide an initial investment to fund the new kidney care company and to provide some operating capital in the future.

The new company’s six-person board will include two directors from Medtronic and DaVita, plus two independent directors. The companies expect the transaction to close within the next calendar year.

“We are excited to partner with Medtronic and share our deep understanding of patient and physician needs to accelerate the development and commercialization of scalable kidney care technologies,” said DaVita’s CEO. Javier Rodriguez said. “DaVita is committed to delivering industry-leading solutions that improve outcomes, access, and quality of life for our patients, and this is another way to bring more options to the market.”