Medtronic doesn't have plans for additional spinoffs in 2023, CEO Geoff Martha said at the J.P. Morgan 41st Annual Healthcare Conference.
In 2022, Medtronic made plans to spin off its combined patient monitoring and respiratory interventions businesses, which are part of the company's medical surgical portfolio. The company also has spinoff plans for its dialysis business.
The spinoff companies combined account for 8 percent of Medtronic's revenue, and there are "some operational entanglements" the company is managing, Mr. Martha said.
"I think over the near term from a divestiture standpoint, I wouldn't count on others," he said, as transcribed Jan. 9 by Seeking Alpha. "However, that being said, the portfolio review [is] ongoing."
Analysts from Needham & Co., an independent investment bank and asset management firm, in 2022 suggested that a spine spinoff could have been on the horizon. Last year, Zimmer Biomet spun off its spine and dental businesses, while Johnson & Johnson announced plans to divide into two companies.
Despite the pause in spinoff activity, Mr. Martha said Medtronic plans to focus on tuck-in acquisitions in 2023.