US-based Conmed is exiting its gastroenterology business, reflecting the company’s aim to sharpen its focus on higher growth margin business lines as part of a broader portfolio optimisation strategy.
The business anticipates that the exit will allow it to align both operations and resources on its core markets, including robotic and laparoscopic surgery, and orthopaedic soft tissue repair surgery.
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Following the announcement on 5 December, the company’s shares on the New York Stock Exchange (NYSE) fell by almost 10% to a $40.07 per share close, down from a $43.69 market open. Conmed has a market cap of $1.24bn.
Conmed’s gastroenterological business has previously been comprised of endoscopic accessories such as retrieval nets and tools such as general endoscopy consumables. However, the company’s flagship gastro product is W.L. Gore & Associates’ VIABIL biliary stent for treating blockages in bile ducts.
Conmed has held the exclusive distribution rights to Gore’s stent in the US and Canada since 2006. While Conmed previously announced in a Form 10-Q filed with the US Securities and Exchange Commission (SEC) in November 2025 that it would not be renewing the agreement beyond 31 December 2026, the company has since moved to accelerate this timeline, now concluding the agreement by 1 January 2026.
From the start of next year, Olympus Corporation will take over distribution responsibilities for Gore’s Viabil stent. In October 2025, W.L. Gore and Olympus signed a global distribution deal for the stent. Terms of the agreement have not been publicly disclosed. According to the Form 10-Q, distributing Gore’s stent represented $44.1m of Conmed’s sales in the nine months ended 30 September 2025.
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By GlobalDataConmed’s CEO Patrick J Beyer commented: “By concentrating our resources on our core growth platforms, we are positioning Conmed for long-term success and continued leadership in surgical innovation.”
Products within Conmed’s gastro portfolio are expected to generate revenues in the $90m-$95m range in fiscal year 2025 (FY25), the company said, with the exit not expected to materially impact overall revenues for the year.
Upon announcing the new strategy, Conmed reiterated its prior FY25 guidance range for revenue of around $1.37bn and earnings between $4.48 and $4.53 per share. As a result of the exit, Conmed expects an earnings per share dilution of $0.45–$0.55 in 2026.
