Medtronic https://www.medtronic.com and DaVita https://www.davita.com have joined forces to form a new independent kidney care focused medical device company referred to right now as “NewCo”.
Medtronic’s capabilities and DaVita’s expertise as a comprehensive kidney care provider will work to develop differentiated therapies for patients with kidney failure. The new company will focus on developing a broad suite of novel kidney care products and solutions, including future home-based products to make different dialysis treatments more accessible to patients.
Ven Manda, President, Medtronic’s RCS business and NewCo’s CEO, reports, “Our singular focus on end-to-end kidney health solutions will position the new company to help the lives of more than three million patients with kidney failure globally, a figure that is expected to double over the next decade.”
Under the terms, NewCo will be co-owned by Medtronic and DaVita, each with equal equity stakes, and will be led by an independent management team. Medtronic will contribute their Renal Care Solution (RCS) business including the current product portfolio (renal access, acute therapies, and chronic therapies), product pipeline, and global manufacturing R&D teams and facilities.
No other Medtronic products or portfolios, including those in the AV access portfolio in the Peripheral Vascular Health business, are included. Both companies will provide an initial investment to fund NewCo and future certain operating capital.
NewCo will be renamed and rebranded and will operate as an independent company governed by as six person board of directors composed of two directors each from Medtronic and DaVita plus two independent directors.
The transaction is expected to close in the next calendar year, subject to the completion of information and consultation obligations with employee representative groups under applicable laws and receipt of customary regulatory approvals.