Orthopedics Leader Exits, Olympus Takes Over

Recently, Conmed, a leading U.S. orthopedic device manufacturer, announced its plan to withdraw from the gastroenterology product line as part of its product portfolio optimization initiative. Olympus and Conmed have reached an agreement: starting from January 1, 2026, Olympus will take over the distribution of Gore Viabil biliary endoprostheses.

Conmed’s withdrawal from the gastroenterology product line includes terminating the distribution agreement for Gore Viabil biliary endoprostheses with W.L. Gore & Associates, which was originally set to expire on December 31, 2026. Following a strategic review, the company decided to accelerate the process and formally signed an agreement to discontinue the partnership effective January 1, 2026.

Patrick J. Beyer, President and Chief Executive Officer of Conmed, stated that this decision reflects the positive progress of the company’s strategic portfolio review. Conmed is committed to focusing on its core markets, such as minimally invasive, robotic, and laparoscopic surgery, as well as orthopedic soft tissue repair and surgical smoke evacuation. By concentrating resources on core growth platforms, the company aims to lay a solid foundation for long-term success and sustained leadership in surgical innovation. Conmed also expressed gratitude to its gastroenterology team for their years of contributions to advancing patient care and supporting clinicians.

From a financial perspective, Conmed expects its gastroenterology product line to generate revenue ranging from $90 million to $95 million in 2025, with a gross profit margin of approximately 45%. However, due to this strategic withdrawal, earnings per share (EPS) in 2026 are projected to be diluted by 45% to 55%. Upon completion of the exit, the consolidated gross profit margin is expected to improve by approximately 80 basis points. The company plans to use the proceeds from the transaction (the amount of which has not been disclosed) for general corporate purposes, including strategic investments, debt repayment, and share repurchases. It is anticipated that the 2025 financial performance will not be materially affected.

In light of Conmed’s exit, Olympus and Conmed have formulated plans to facilitate a smooth transition of U.S. commercial support and distribution. Starting January 1, 2026, Olympus will assume responsibility for the distribution of Viabil, with its representatives becoming the primary point of contact for orders. Conmed plans to continue providing full support for the product until December 31, 2025. Olympus stated that all parties are committed to ensuring the uninterrupted availability of the device for patients and physicians.

Gore’s Viabil is a fully covered, self-expanding metal stent that offers a unique alternative for relieving symptoms associated with biliary tract conditions. It features an easy-to-use delivery system and a non-shortening design, enabling precise deployment and positioning. Its non-porous ePTFE/FEP (expanded polytetrafluoroethylene/fluorinated ethylene propylene) lining forms a robust and durable barrier, delivering the tumor ingrowth resistance benefits of covered stents while minimizing the migration rate commonly seen with such devices.

As a leader in the fields of orthopedics and minimally invasive surgery, CONMED has established a prominent industry position. Its development history, core products, market standing, and future plans are worthy of in-depth analysis.

CONMED’s story began in 1970, when founder Eugene Corasanti established the company in Utica, New York, with its first product being disposable ECG monitoring electrodes. Leveraging product innovation and precise market positioning and expansion in the electrode sector, the company quickly gained a foothold in the medical device industry. In 1987, CONMED successfully listed on the NASDAQ in the United States, a milestone that launched its global expansion journey.

Since then, CONMED has grown substantially through a series of strategic acquisitions.

In the electrosurgery segment, the acquisition of Aspen Labs in 1989 strengthened its competitiveness in the market; the merger with Birtcher Corporation in 1995 further consolidated its expertise in ECG electrodes and argon plasma coagulation technology; the acquisition of Buffalo Filter in 2019 completed its surgical smoke management system, effectively reducing health risks for healthcare workers.

In orthopedics and minimally invasive surgery, CONMED also made frequent and impactful acquisitions. The acquisition of Linvatec, the world’s second-largest manufacturer of arthroscopic and orthopedic devices, in 1997 expanded its business in arthroscopic and orthopedic surgical equipment; the acquisition of C.R. Bard’s gastroenterology and pulmonology businesses in 2004 enhanced its influence in the general surgery market; the acquisition of SurgiQuest in 2016 brought in the AirSeal trocar-less insufflation system, improving the efficiency of laparoscopic and robotic surgeries; the acquisition of In2Bones (a specialist in foot and ankle injury treatment) and Biorez (a developer of biocomposite implants) in 2022 strengthened its orthopedic soft tissue repair product line.

In the sports medicine field, CONMED has also made active strategic deployments. In 2011, it entered into a partnership with the Musculoskeletal Transplant Foundation (MTF) to exclusively market sports medicine allograft tissues; the acquisition of Biorez in 2022 introduced the BioBrace™ implant, a novel biocomposite material designed to promote tendon and ligament healing.

CONMED focuses on multiple fields including orthopedics, general surgery, urology, and obstetrics and gynecology. Its product range covers equipment, instruments, implants, and consumables, forming three solid technical pillars.

The high-frequency electrosurgical energy system is a key highlight. Equipped with dynamic response technology, automatic circuit monitoring, and the world’s first argon beam coagulation (ABC) technology, this system is widely used in procedures such as skin incision, tumor resection, and vessel coagulation. It is renowned for precise cutting, rapid hemostasis, and minimal tissue damage. Representative products include classic models such as the Sabre Genesis and System 7550, as well as the next-generation argon plasma coagulator, HelixAR.

The endoscopy and intelligent pneumoperitoneum system also demonstrates outstanding performance. Its 3D/2D endoscopes feature the world’s first autoclaveable camera and the first 3D full HD laparoscopic system, Viking. Combined with the AirSeal intelligent pneumoperitoneum management system, it enables constant-pressure insufflation and automatic smoke evacuation, effectively addressing the issues of surgical field obscuration and smoke interference. This system is widely applied in minimally invasive surgeries in gastroenterology, urology, gynecology, and also supports innovative surgical procedures such as transanal minimally invasive surgery (taTME, TAMIS).

The orthopedic sports medicine solutions boast a diverse product portfolio, including powered resection instruments, arthroscopes, reconstruction systems, tissue repair kits, and metallic/ bioabsorbable implants (e.g., BioBrace™). Among them, the BioBrace™ implant utilizes a highly porous collagen matrix combined with absorbable PLLA microfilaments to form a biosensing scaffold that promotes soft tissue healing, delivering significant technical advantages.

CONMED holds extensive influence in the global medical technology sector. With over 3,500 employees, its products are sold in more than 100 countries and regions, serving various departments including orthopedics, surgery, and otorhinolaryngology. The company ranked 10th on the 2018 Global Top 10 Orthopedic Medical Device Companies list.

In 2024, CONMED achieved total revenue of $1.303 billion, representing a year-on-year increase of 4.98%. This growth was primarily driven by the robust performance of its core businesses (minimally invasive surgery, smoke evacuation systems, orthopedic soft tissue repair) and market expansion resulting from strategic focus. Net income attributable to shareholders reached $132 million, surging by 105.44% year-on-year. This substantial growth in net profit reflects the company’s significant improvement in profitability through portfolio optimization, enhanced operational efficiency, and cost control measures.

Faced with market changes, CONMED is proactively implementing strategic focus and financial adjustments. Looking ahead, the company will continue to deepen the research and development of intelligent surgical equipment (e.g., AI-assisted endoscopes), bioabsorbable materials (e.g., next-generation BioBrace™ implants), and patient-friendly consumables. It is committed to providing safer and more efficient solutions for healthcare professionals and patients worldwide, leading the transformation and development of the surgical medical field.

Conmed’s strategic restructuring not only impacts its own business layout and financial trajectory but also presents new opportunities for Olympus in the distribution of gastroenterology products. With its unique features, the Viabil product is expected to continue delivering value in the market.