Medtronic and DaVita will equally own and operate the new company, led by management team from both partners, along with two independent directors
Medtronic, DaVita will form NewCo. (Credit: Robina Weermeijer on Unsplash)
Medtronic and US-based kidney care provider DaVita have unveiled plans to create a new medical device company, dubbed NewCo, focused on kidney care.
The new, independent firm will combine Medtronic’s healthcare technology capabilities and DaVita’s deep expertise in kidney care.
NewCo will focus on developing novel kidney care products and solutions, including future home-based products, to make different dialysis treatments more accessible to patients.
The new entity is said to advance the development of differentiated therapies for patients with kidney failure, enhance their treatment experience and improve their outcomes.
Medtronic RCS business president Ven Manda said: “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.”
Medtronic and DaVita will equally own and operate NewCo as an independent company, led by a management team from both partners, along with two independent directors.
Medtronic will leverage its Renal Care Solutions (RCS) business, including its current portfolio of therapies and chronic therapies, along with product pipeline, manufacturing R&D teams and facilities for NewCo.
The two companies will provide an initial investment to fund NewCo and future operating capital.
The transaction is expected to close in the next calendar year, subject to satisfaction of customary closing conditions, including regulatory approvals.
It is also subject to completion of the information and consultation obligations with employee representative groups.
DaVita CEO Javier Rodriguez said: “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 commercialisation of scalable kidney care technologies.
“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.”