Medical leaders Medtronic and Abbott are collaborating on diabetes care in a new partnership that will combine technologies to expand options for patients.

Medtronic is known for insulin pumps with the U.S. Food and Drug Administration approving its latest generation, the MiniMed 780G device, last year. Abbott's FreeStyle Libre has become the world's most popular continuous glucose monitor (CGM) with more than 6 million users globally. Insulin pumps constantly deliver insulin eliminating the need for multiple daily injections. A CGM tracks a patient's blood sugar level and can indicate if changes in diet or medication are needed. The devices can be integrated.

Under the partnership, which was announced Wednesday, Abbott will make a continuous glucose monitor that will exclusively work with Medtronic devices. The new device will be based on Abbott's Libre technology but will not carry the Libre brand. Abbott will develop the new CGM which will be sold by Medtronic.

The combination of the Medtronic and Abbott devices will allow automatic adjustments of insulin to keep a patient's glucose in range. Que Dallara, president of Medtronic's Diabetes Operating Unit, said that this will help simplify diabetes management for patients.

Analysts were upbeat about the deal bringing the medical device competitors together and see it as shoring up a soft spot in Medtronic's diabetes business.

"Medtronic's CGM has always been the weak link for the company's [diabetes] platform, and an integration with Abbott's leading CGM technology should help support new patient growth," wrote Robbie Marcus, an analyst with J.P. Morgan, of the new combination.

The partnership could help grow Medtronic's revenues, he said.

"While it may take time to fully see the effects of this partnership, we believe this should help Medtronic's diabetes business over the long-term," wrote Edward Jones analyst John Boylan, in a research note. "Medtronic developing and eventually marketing an integrated CGM monitor with Abbott should give patients more options."

The collaboration is also beneficial for Abbott which will draw new patients because few of its own use Medtronic products, Marcus said.

"This is a win for people with diabetes, offering more people world-leading Libre technology," said Jared Watkin, executive vice president of Abbott's diabetes care business, in a statement. "It's a continuation of Abbott's strategy to make diabetes management as easy as possible by making Libre the most connected CGM in the world."

The companies did not disclose financial terms or an estimated timeline for the commercial availability of the new product.

In recent years, diabetes has been a problematic business for Medtronic. It received a warning letter from the FDA in December 2021, raising questions about its production of devices like insulin pumps and remote controllers and its handling of complaints and recalls. Sales from its diabetes division declined. Last year, a proposed class-action suit in California alleged that the app used with Medtronic's InPen shared user data with companies like Google.

But overall, the company is on better footing today. Medtronic's diabetes business posted sales of $2.5 billion during its last fiscal year that ended in April. Its diabetes operations posted 10% sales gains for the year, the largest growth for any Medtronic division.