CONMED Corporation confirmed a strategic exit from its gastroenterology product lines, marking a major move in its broader portfolio reset. The company wants to redirect time, investment, and talent into the surgical markets where it already holds strong momentum. With this strategic exit, leadership plans to sharpen focus on minimally invasive and robotic procedures, smoke evacuation systems, and orthopedic soft tissue repair. The decision shows how the company wants to prioritize high-growth opportunities rather than spread resources thin. It also highlights the strategic exit as a core element of CONMED’s long-term roadmap.
Shift in Strategy Favors Core Surgical Platforms
Patrick J. Beyer, CONMED’s President and CEO, called the announcement an important milestone in its strategy review. He stressed that CONMED intends to lead in areas where innovation can meaningfully improve outcomes. Beyer also noted that the gastroenterology business played a role in patient care for many years, and he thanked that team for their contribution to clinicians and customers.
Early Closure of Gore Agreement Accelerates Transition
For years, CONMED held exclusive U.S. and Canadian rights to the Gore® VIABIL® biliary stent under a distribution agreement with W. L. Gore & Associates. That agreement was set to expire at the end of 2026. However, following the strategic review, CONMED will now conclude the agreement a full year earlier, effective January 1, 2026. The financial details remain undisclosed. The earlier transition appears aligned with the company’s plan to focus tightly on surgical platforms already delivering strong results.
Financial Impact Points to Long-Term Margin Benefits
CONMED expects its gastroenterology product lines to generate between $90 million and $95 million in revenue in 2025 with gross margins near 45%. The company anticipates EPS dilution of $0.45 to $0.55 in 2026 after the transition. Even so, executives believe that exiting gastroenterology will strengthen overall profitability by improving consolidated gross margins by about 80 basis points once the shift is completed.
Proceeds from the transaction with Gore will support general corporate needs, including strategic investments, debt reduction, and possible share repurchases. Despite the business changes, CONMED does not expect a meaningful impact on its 2025 performance. Revenue guidance remains set between $1.365 billion and $1.372 billion, and adjusted EPS expectations hold at $4.48 to $4.53. Fresh guidance for 2026 will arrive during the Q4 2025 earnings call.
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News Source: Businesswire.com
