May 21 (Reuters) - Medical device maker Medtronic ( MDT ) said on

Wednesday it plans to separate its diabetes business, which houses its insulin

pumps and other wearable devices, into a stand-alone company.

The new company will be headed by Que Dallara, the current chief of

Medtronic's ( MDT ) diabetes division, and will house about 8,000 employees and be

headquartered in Northridge, California.

The diabetes unit has recently struggled after a 2021 warning by regulators

about the company's MiniMed 600 insulin pumps. The spin off would allow

Medtronic ( MDT ) to focus on more profitable businesses such as heart devices, its

biggest revenue driver.

The spin off is expected to be complete within the next 18 months through a

series of capital markets deals, with a preferred path of an initial public

offering and subsequent split-off.

The separation was first reported by the Wall Street Journal earlier on

Wednesday.

In 2022, the U.S. Food and Drug Administration flagged a cybersecurity risk

for the MiniMed 600 Series insulin pump system, cautioning that the device was

susceptible to cyberattacks that could potentially disrupt insulin delivery.

The decision to separate the diabetes business follows years of

restructuring efforts, which included a delay in the FDA clearance for the

MiniMed 780G insulin pump until 2023.

Separately, the company posted an adjusted profit of $1.62 per share for the

fourth quarter ended April 25, ahead of Wall Street estimates of $1.58 per

share, according to LSEG data. Its revenue of $8.93 billion also beat estimates

of $8.82 billion, driven by sales of both heart devices and diabetes devices.

Shares in the Ireland-based company were up marginally in pre-market

trading.