Conmed to exit gastroenterology business

Core Insights - Conmed is exiting its gastroenterology business to focus on higher growth margin business lines as part of a portfolio optimization strategy [1][6] - The exit is expected to allow Conmed to align operations and resources on core markets, including robotic and laparoscopic surgery, and orthopaedic soft tissue repair surgery [1] Financial Impact - Following the announcement, Conmed's shares fell nearly 10% to $40.07 per share, down from $43.69 at market open, with a market cap of $1.24 billion [2] - The gastroenterology business was projected to generate revenues of $90 million to $95 million in fiscal year 2025, but the exit is not expected to materially impact overall revenues for the year [6][7] - Conmed reiterated its FY25 revenue guidance of around $1.37 billion and earnings per share between $4.48 and $4.53, with an expected earnings per share dilution of $0.45 to $0.55 in 2026 due to the exit [7] Business Transition - Conmed's gastroenterology business included endoscopic accessories and the VIABIL biliary stent, which it has distributed exclusively in the US and Canada since 2006 [3][4] - The distribution rights for the VIABIL stent will transfer to Olympus Corporation starting January 1, 2026, following a global distribution deal signed in October 2025 [5]