CONMED Corporation (CNMD)

CONMED Corp.'s stock price has significantly declined, with a 40.92% decrease from January 6, 2025, to January 2, 2026. Key events include the strategic exit from gastroenterology product lines in December 2025, which is expected to improve gross margins but dilute near-term revenue and EPS. Todd Garner departed as CFO, effective March 15, 2025. Ongoing supply chain issues, particularly in orthopedics, have impacted growth. Several analysts downgraded the stock or reduced price targets. Q3 2024 sales increased by 4.0% to $316.7 million. The company reported a solid start to fiscal year 2025, with total sales exceeding guidance and an increase in adjusted diluted EPS.

There is an indication of demand seasonality for CONMED's products and services, with Q1 sales growth in 2025 lower than Q4's, reflecting seasonal trends. The company's business model includes recurring revenue from disposables and one-time sales of capital equipment to ensure financial stability. Demand for its products remains strong due to their clinical differentiation, with hospital systems prioritizing minimally invasive surgery (MIS) procedures.

CONMED Corp. is a global medical technology company focused on surgical and patient care products, operating in the medical equipment sector. It designs, manufactures, and distributes devices for various surgical specialties, including orthopedics, general surgery, gynecology, thoracic surgery, and gastroenterology. Key products include orthopedic implants, fluid management systems, advanced surgical technologies like the AirSeal system, electrosurgical generators, arthroscopy instruments, and the BioBrace implant. The company operates through Orthopedic Surgery and General Surgery segments and exited its gastroenterology product lines in late 2025 to improve gross margins.

CONMED Corp. has a global presence, distributing products through local dealers, sales subsidiaries, and branches in the Americas, Europe, the Middle East, and Asia-Pacific, selling in approximately 100 countries. Manufacturing facilities are in the United States and Mexico, with sales offices in over 20 international locations, and the majority of its revenue is generated from the USA.

CONMED's brand reputation is built on its recognition as a provider of technologically leading products in the medical field. The company believes that strong brand recognition increases demand for its products and reinforces its reputation for quality and service, aiding in the market acceptance of new branded products. Its products are marketed under leading brand names such as CONMED®, CONMED Linvatec®, and Hall Surgical®. Ongoing supply chain challenges and the exit from gastroenterology product lines could indirectly affect customer perception.

CONMED Corp. is predominantly owned by institutional shareholders, including BlackRock Inc., Vanguard Group Inc., Earnest Partners LLC, State Street Corp., and Silvercrest Asset Management Group LLC. Institutional investors and index funds account for the vast majority of shareholders, while insider ownership remains modest.