Will Exiting Gastroenterology to Refocus on Core Surgery Change CONMED’s (CNMD) Margin Expansion Narrative?

• In early December 2025, Olympus, W. L. Gore & Associates, and CONMED announced that US distribution of the GORE VIABIL biliary stent will shift from CONMED to Olympus on January 1, 2026, as CONMED accelerates the end of its Gore distribution agreement.
• At the same time, CONMED confirmed it will exit its gastroenterology product lines to focus resources on minimally invasive, robotic, and orthopedic soft tissue surgery, aligning its portfolio more tightly with its core areas.
• Now, we will assess how CONMED’s exit from gastroenterology reshapes its existing investment narrative centered on margin expansion and core surgical growth.

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CONMED Investment Narrative Recap

To own CONMED, you need to believe its focus on minimally invasive and orthopedic surgery can eventually translate modest revenue growth into healthier margins, despite recent earnings pressure and a weak share price. The exit from gastroenterology looks directionally consistent with that margin story but also removes a revenue contributor, which could amplify the near term risk that elevated operating costs and recent profit volatility weigh on earnings progress.

The most relevant recent announcement here is CONMED’s plan to exit its gastroenterology lines so it can align operations and resources with minimally invasive, robotic, laparoscopic surgery and orthopedic soft tissue repair. That shift ties directly into the key catalysts around procedure growth and smoke evacuation, but also raises questions about execution risk as the company simplifies its portfolio while still working through supply chain, tariff and profitability challenges.

Yet investors should also be aware that ongoing margin pressure and a one off loss have recently dragged returns lower, which...

Read the full narrative on CONMED (it's free!)

CONMED's narrative projects $1.6 billion revenue and $154.0 million earnings by 2028. This requires 5.7% yearly revenue growth and a roughly $43.8 million earnings increase from $110.2 million today.

Uncover how CONMED's forecasts yield a $54.00 fair value, a 36% upside to its current price.

Exploring Other Perspectives

Two members of the Simply Wall St Community currently see CONMED’s fair value tightly clustered between US$54 and US$55 per share, underscoring how differently individuals can assess upside. You should weigh those views against the risk that high SG&A and R&D, combined with portfolio reshaping, could limit the margin expansion story that many are counting on.

Explore 2 other fair value estimates on CONMED - why the stock might be worth as much as 38% more than the current price!

Build Your Own CONMED Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your CONMED research is our analysis highlighting 4 key rewards and 4 important warning signs that could impact your investment decision.
• Our free CONMED research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate CONMED's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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