Medtronic, DaVita to form new kidney health technology company
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Medtronic and DaVita Inc. have announced the intent to create an independent kidney care-focused medical device company called NewCo.
According to a press release, NewCo will be renamed and rebranded at close, which is estimated to take place in the next calendar year. Medtronic and DaVita plan to co-own NewCo and provide a director from each organization for the six-person board of directors, however, an independent management team will lead the company.
“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,” Javier Rodriguez, CEO of DaVita, said in the release. “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 agreement includes Medtronic contributing Renal Care Solutions (RCS) in addition to its current product portfolio, product pipeline and global manufacturing teams and facilities. Similarly, both companies intend to contribute an initial investment to fund NewCo and will have equal equity stakes.
“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 upon close, said in the release. “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.”
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