CONMED Corporation (NYSE:CNMD) on Friday said it will exit its gastroenterology product lines as part of a broader portfolio overhaul aimed at sharpening its focus on higher-growth surgical markets.
The move accelerates the company’s transition toward minimally invasive, robotic, and laparoscopic surgery, as well as smoke evacuation and orthopedic soft tissue repair.
“By concentrating our resources on our core growth platforms, we are positioning CONMED for long-term success and continued leadership in surgical innovation,” said Patrick Beyer, CONMED’s President and CEO.
As part of the shift, the company is unwinding its exclusive U.S. and Canadian distribution rights for the Gore VIABIL biliary stent through its agreement with W. L. Gore & Associates.
CONMED had already indicated in its most recent quarterly filing that it did not plan to renew the agreement beyond the end of 2026.
After its strategic review, the company chose to accelerate that timeline, ending the partnership effective January 1, 2026. Financial terms were not released.
Revenue and Margin Impact From Gastroenterology Exit
The gastroenterology portfolio was expected to bring in $90 million to $95 million in 2025 revenue, with gross margins near 45%.
While stepping away from this business will reduce earnings in the near term, CONMED expects the exit to strengthen profitability over time. The company said it anticipates EPS dilution of 45 cents to 55 cents in 2026 as a result of the move.
Once the exit is complete, CONMED expects its consolidated gross margin profile to improve by about 80 basis points.
Proceeds from the Gore transaction are expected to support general corporate activities, which could include strategic investments, paying down debt, or shareholder returns through repurchases.
2025 Guidance Reaffirmed
Still, the company said its 2025 outlook remains unchanged. Management reaffirmed its previous revenue forecast of $1.365 billion to $1.372 billion compared to the consensus of $1.368 billion, and adjusted earnings guidance of $4.48 to $4.53 per share compared to the consensus of $4.47.
The company plans to issue full-year 2026 guidance alongside its fourth-quarter 2025 results.
CNMD Price Action: CNMD shares were down 9.43% at $40.07 at the time of publication on Friday, according to Benzinga Pro data.
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