Sam Brusco, Associate Editor05.26.22
Medtronic and DaVita Inc. intend to create a new independent kidney care medical device firm (“NewCo”, for now) to boost treatment experience and outcomes.
The company will channel the strength of Medtronic’s healthcare technology leadership and DaVita’s expertise in comprehensive kidney care to develop differentiated therapies for kidney failure patients. NewCo aims to provide a broad suite of products and solutions, including home-based products, to increase accessibility of different dialysis treatments.
"This is an exciting moment that will shape the future of kidney care," Ven Manda, president of Medtronic's RCS business (and NewCo's CEO on close) told the press. "Our singular 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 patients with kidney failure globally—a figure expected to double over the next decade."
"We're excited to collaborate with Medtronic and share our deep insight into patient and physician needs with the goal of accelerating the development and commercialization of scalable kidney care technologies," added Javier Rodriguez, CEO of DaVita. "DaVita is committed to best-in-class solutions that improve outcomes, access and the quality of life of our patients, and this is another way to provide more options to the market."
The new company will be co-owned by Medtronic and DaVita with equal stakes in equity, and led by an independent management team. Medtronic will provide its renal care solutions business and global manufacturing R&D teams. Both companies will initially invest to fund NewCo.
The transaction is expected to close in 2023.
The company will channel the strength of Medtronic’s healthcare technology leadership and DaVita’s expertise in comprehensive kidney care to develop differentiated therapies for kidney failure patients. NewCo aims to provide a broad suite of products and solutions, including home-based products, to increase accessibility of different dialysis treatments.
"This is an exciting moment that will shape the future of kidney care," Ven Manda, president of Medtronic's RCS business (and NewCo's CEO on close) told the press. "Our singular 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 patients with kidney failure globally—a figure expected to double over the next decade."
"We're excited to collaborate with Medtronic and share our deep insight into patient and physician needs with the goal of accelerating the development and commercialization of scalable kidney care technologies," added Javier Rodriguez, CEO of DaVita. "DaVita is committed to best-in-class solutions that improve outcomes, access and the quality of life of our patients, and this is another way to provide more options to the market."
The new company will be co-owned by Medtronic and DaVita with equal stakes in equity, and led by an independent management team. Medtronic will provide its renal care solutions business and global manufacturing R&D teams. Both companies will initially invest to fund NewCo.
The transaction is expected to close in 2023.
