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CONMED Stock Falls as It Strategically Exits Gastroenterology Portfolio
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Key Takeaways
CNMD will leave its gastroenterology lines, including an early end to its VIABIL stent distribution deal.
CNMD shifts resources to minimally invasive and orthopedic soft tissue surgery for stronger margins.
CNMD sees improved gross margin and flexibility ahead while reaffirming its 2025 revenue and EPS.
CONMED (CNMD - Free Report) recently announced its intention to exit its gastroenterology product lines, including an early conclusion of its distribution agreement with W. L. Gore & Associates, Inc. (Gore) for the VIABIL biliary stent, as part of a broader portfolio reshaping effort.
The company noted that the move is designed to sharpen its focus on core growth areas such as minimally invasive and orthopedic soft tissue surgery, enabling better resource allocation and a stronger long-term margin profile.
Likely Trend of CNMD Stock Following the News
Following the announcement, the company's shares plunged more than 9% at Friday’s close. Year to date, shares have lost 41.5% against the industry’s 11% growth. The S&P 500 has risen 19.2% over the same period.
In the long run, the exit is expected to streamline CNMD’s portfolio, lift its consolidated gross margin profile, and free up capital for higher-return investments across its core surgical platforms. Management believes this sharper focus will strengthen competitive positioning, improve operating efficiency, and support more durable, margin-accretive growth over time.
CNMD currently has a market capitalization of $1.24 billion.
More on the Exit News
CONMED’s decision to exit its gastroenterology product portfolio marks a deliberate step in its broader portfolio optimization strategy. The company emphasized that narrowing its focus to minimally invasive surgery, smoke evacuation, and orthopedic soft tissue repair will allow it to channel resources into platforms where it sees higher innovation potential and stronger competitive positioning. Management highlighted the meaningful contributions of the gastroenterology team but noted that the shift is necessary to align the business with areas offering better long-term value creation.
As part of this transition, CONMED has also accelerated the conclusion of its distribution agreement with Gore for the VIABIL biliary stent. Although the agreement was originally set to run through 2026, the company will now exit on Jan. 1, 2026. This early wind-down reflects the outcome of a strategic review and enables a cleaner, more immediate realignment of the gastroenterology business. While financial details were not disclosed, CONMED noted that proceeds from the Gore transaction will support broader corporate priorities.
Financially, the gastroenterology product lines are expected to generate $90–$95 million in revenues in 2025 with gross margins of roughly 45%. The company anticipates earnings per share (EPS) dilution of 45–55 cents in 2026 due to the exit, but expects the move to improve its consolidated gross margin profile by about 80 basis points once fully completed. Importantly, CONMED reaffirmed its 2025 revenue and adjusted EPS guidance, signaling no material near-term impact and maintaining investor confidence in its operational plans.
Looking ahead, the exit is likely to meaningfully reshape CONMED’s business mix, strengthen profitability, and enhance strategic flexibility. By shedding a lower-margin segment and focusing on categories with higher growth potential, the company aims to build a more scalable and resilient operating model.
Image Source: Zacks Investment Research
CNMD’s Zacks Rank & Other Key Picks
Currently, CNMD carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader medical space are Medpace Holdings (MEDP - Free Report) , Intuitive Surgical (ISRG - Free Report) and Boston Scientific (BSX - Free Report) .
Medpace, currently carrying a Zacks Rank #2, reported third-quarter 2025 EPS of $3.86, which surpassed the Zacks Consensus Estimate by 10.29%. Revenues of $659.9 million beat the Zacks Consensus Estimate by 3.04%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
MEDP has an estimated earnings growth rate of 17.1% for 2025 compared with the industry’s 16.6% growth. The company beat earnings estimates in each of the trailing four quarters, the average surprise being 14.28%.
Intuitive Surgical, sporting a Zacks Rank #1 at present, posted third-quarter 2025 adjusted EPS of $2.40, exceeding the Zacks Consensus Estimate by 20.6%. Revenues of $2.51 billion topped the Zacks Consensus Estimate by 3.9%.
ISRG has an estimated long-term earnings growth rate of 15.7% compared with the industry’s 11.9% growth. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 16.34%.
Boston Scientific, currently carrying a Zacks Rank #2, reported third-quarter 2025 adjusted EPS of 75 cents, which surpassed the Zacks Consensus Estimate by 5.6%. Revenues of $5.07 billion outperformed the Zacks Consensus Estimate by 1.9%.
BSX has an estimated long-term earnings growth rate of 16.4% compared with the industry’s 13.5% growth. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 7.36%.
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CONMED Stock Falls as It Strategically Exits Gastroenterology Portfolio
Key Takeaways
CONMED (CNMD - Free Report) recently announced its intention to exit its gastroenterology product lines, including an early conclusion of its distribution agreement with W. L. Gore & Associates, Inc. (Gore) for the VIABIL biliary stent, as part of a broader portfolio reshaping effort.
The company noted that the move is designed to sharpen its focus on core growth areas such as minimally invasive and orthopedic soft tissue surgery, enabling better resource allocation and a stronger long-term margin profile.
Likely Trend of CNMD Stock Following the News
Following the announcement, the company's shares plunged more than 9% at Friday’s close. Year to date, shares have lost 41.5% against the industry’s 11% growth. The S&P 500 has risen 19.2% over the same period.
In the long run, the exit is expected to streamline CNMD’s portfolio, lift its consolidated gross margin profile, and free up capital for higher-return investments across its core surgical platforms. Management believes this sharper focus will strengthen competitive positioning, improve operating efficiency, and support more durable, margin-accretive growth over time.
CNMD currently has a market capitalization of $1.24 billion.
More on the Exit News
CONMED’s decision to exit its gastroenterology product portfolio marks a deliberate step in its broader portfolio optimization strategy. The company emphasized that narrowing its focus to minimally invasive surgery, smoke evacuation, and orthopedic soft tissue repair will allow it to channel resources into platforms where it sees higher innovation potential and stronger competitive positioning. Management highlighted the meaningful contributions of the gastroenterology team but noted that the shift is necessary to align the business with areas offering better long-term value creation.
As part of this transition, CONMED has also accelerated the conclusion of its distribution agreement with Gore for the VIABIL biliary stent. Although the agreement was originally set to run through 2026, the company will now exit on Jan. 1, 2026. This early wind-down reflects the outcome of a strategic review and enables a cleaner, more immediate realignment of the gastroenterology business. While financial details were not disclosed, CONMED noted that proceeds from the Gore transaction will support broader corporate priorities.
Financially, the gastroenterology product lines are expected to generate $90–$95 million in revenues in 2025 with gross margins of roughly 45%. The company anticipates earnings per share (EPS) dilution of 45–55 cents in 2026 due to the exit, but expects the move to improve its consolidated gross margin profile by about 80 basis points once fully completed. Importantly, CONMED reaffirmed its 2025 revenue and adjusted EPS guidance, signaling no material near-term impact and maintaining investor confidence in its operational plans.
Looking ahead, the exit is likely to meaningfully reshape CONMED’s business mix, strengthen profitability, and enhance strategic flexibility. By shedding a lower-margin segment and focusing on categories with higher growth potential, the company aims to build a more scalable and resilient operating model.
Image Source: Zacks Investment Research
CNMD’s Zacks Rank & Other Key Picks
Currently, CNMD carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader medical space are Medpace Holdings (MEDP - Free Report) , Intuitive Surgical (ISRG - Free Report) and Boston Scientific (BSX - Free Report) .
Medpace, currently carrying a Zacks Rank #2, reported third-quarter 2025 EPS of $3.86, which surpassed the Zacks Consensus Estimate by 10.29%. Revenues of $659.9 million beat the Zacks Consensus Estimate by 3.04%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
MEDP has an estimated earnings growth rate of 17.1% for 2025 compared with the industry’s 16.6% growth. The company beat earnings estimates in each of the trailing four quarters, the average surprise being 14.28%.
Intuitive Surgical, sporting a Zacks Rank #1 at present, posted third-quarter 2025 adjusted EPS of $2.40, exceeding the Zacks Consensus Estimate by 20.6%. Revenues of $2.51 billion topped the Zacks Consensus Estimate by 3.9%.
ISRG has an estimated long-term earnings growth rate of 15.7% compared with the industry’s 11.9% growth. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 16.34%.
Boston Scientific, currently carrying a Zacks Rank #2, reported third-quarter 2025 adjusted EPS of 75 cents, which surpassed the Zacks Consensus Estimate by 5.6%. Revenues of $5.07 billion outperformed the Zacks Consensus Estimate by 1.9%.
BSX has an estimated long-term earnings growth rate of 16.4% compared with the industry’s 13.5% growth. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 7.36%.