CONMED (CNMD) CL King’s 22nd Annual Best Ideas Conference 2024 summary

Orthopedic and supply chain challenges

• Orthopedic supply issues, mainly vendor-driven, have persisted since early 2023 but are expected to be resolved by end of 2024.

• Supply disruptions impacted both the legacy sports medicine and recently acquired foot and ankle businesses.

• Larger competitors exited supply issues earlier due to greater vendor leverage and sophistication.

• No permanent market share loss is expected; most customers are likely to return as supply stabilizes.

• General surgery operations remain unaffected by these supply challenges.

AirSeal and general surgery trends

• AirSeal retains strong customer loyalty, especially for complex robotic and laparoscopic surgeries.

• Non-robotic AirSeal usage is growing faster than robotic, now representing about 40% of revenue.

• AirSeal’s clinical benefits, such as reduced length of stay, drive adoption in both robotic and non-robotic cases.

• Initial concerns about losing robotic market share to new competitors have not materialized; attachment rates are stronger than forecasted.

Buffalo Filter and legislative impact

• States with strong smoke evacuation legislation, like Oregon and Colorado, show accelerated adoption and growth.

• Only 40%-50% of institutions in these states have fully implemented solutions, indicating significant growth potential.

• A temporary quality issue was resolved, and Buffalo Filter is positioned for sustainable growth in a market expected to become multi-billion dollar.