Medtronic to Split Off Diabetes Unit as Tariffs Hit Earnings (1)

Medtronic Plc plans to separate its diabetes business into a standalone company, helping the medical-devices company focus on more profitable operations as the US-China trade dispute threatens its earnings.

The unit will become a new publicly traded entity, with an initial public offering the favored route, according to a statement Wednesday. Diabetes accounted for about 8% of Medtronic’s $33.5 billion revenue in the latest fiscal year.

Medtronic is based in Ireland but has its operational headquarters in Minneapolis. The company has been trying to turn around the diabetes business following concerns over the security of certain insulin pumps.

The move ...