Doctors and their patients get a charge out of CONMED's surgical equipment. The medical technology company develops and manufactures a wide range of electronic instruments such as electrosurgical systems, powered surgical instruments, and endoscopic devices. Arthroscopic (joint surgery) products represent the company's largest segment and include reconstruction tools, scopes, implants, and fluid management systems. CONMED also manufactures patient monitoring products and handheld medical accessories such as scissors, sutures, and staplers. Brands include Linvatec and Hall Surgical. The company sells its products in more than 100 countries through its direct sales force and independent distributors.
Most of the company's revenues come from surgical instruments and related supplies, including products sold through its CONMED Linvatec (arthroscopic and powered surgical instruments), CONMED Electrosurgery (generators and electrodes), and CONMED Endosurgery (minimally invasive laparoscopic instruments) divisions. These products are marketed to hospitals, surgeons, and physicians in specialty fields such as orthopedics, neurosurgery, gastroenterology, and gynecology. Nonsurgical offerings come from CONMED Patient Care (patient monitoring systems) and CONMED Endoscopic Technologies (endoscopes for digestive system diagnostic procedures).
The company strives to add new product offerings by conducting research and development programs. For instance, in 2009 the firm launched several new gastrointestinal endoscopic devices, and in 2010 it introduced the Altrus thermal tissue fusion system. It also seeks to expand its device lines by forming collaborative partnerships with other device makers and pursuing strategic acquisitions. To that end, in 2012 the company acquired Viking Systems, for approximately $22.5 million. The buy expanded its general surgical imaging operations by adding Viking's stand-alone 3D laparoscopic vision system, which is sold in the US and Europe. CONMED expects to relocate its own 2-D surgical video research and marketing team to Viking's Massachusetts base.
CONMED is also working to increase foreign sales and broaden both its direct and indirect sales networks. The company looks to grow in markets with aging populations (where more medical care is needed); it also caters to customers looking to lower health care costs. So far CONMED's expansion efforts have paid off in the international arena, as sales outside of the US have grown to account for nearly half of the company's revenues.
The company operates eight manufacturing plants in the US, Finland, and Mexico. However, to reduce operational expenses during times of economic uncertainty, the company has restructured its manufacturing organization. CONMED closed two New York plants and one Canadian plant and consolidated certain manufacturing operations to two remaining facilities in New York and Mexico during 2009. As economic conditions worsened, the company announced in early 2010 that it would consolidate additional manufacturing functions from facilities in New York, Florida, and California to its Mexico plant. CONMED is also consolidating some distribution and administration functions. – less