CONMED (CNMD) 2024 Wells Fargo Healthcare Conference summary

Market and operational trends

• No significant slowdown observed in surgical procedure volumes for general surgery or orthopedics; recent softness in orthopedics attributed to internal supply chain constraints rather than market weakness.

• Supply chain challenges in orthopedics, especially sports medicine, have persisted longer than expected, but foot and ankle issues have largely been resolved.

• Guidance incorporates realistic expectations for supply chain recovery, with confidence in resolving constraints by year-end 2024 and full normalization in 2025.

• No anticipated spillover of supply chain issues into general surgery; inventory and product availability for AirSeal and Buffalo Filter remain strong.

• Lowered top-line guidance for the year is solely due to orthopedic supply chain issues.

Commercial strategy and market share

• No plans to change commercial strategy or pricing due to supply constraints; contracts and pricing remain stable.

• Any market share loss from supply issues is expected to be minor and not material to long-term outlook.

• Focus remains on customer service and execution, with efforts to provide alternatives when possible.

Segment performance and growth outlook

• Growth dynamics in general surgery and orthopedics expected to mirror first-half trends in the second half of 2024.

• Growth drivers include recent and older acquisitions, with upside potential if these outperform; downside risk if market softens.