What Happened?
Shares of medical tech company CONMED (NYSE: CNMD) jumped 3.3% in the afternoon session after positive sentiment in the medical device sector was buoyed by the highly successful initial public offering (IPO) of medical supply giant Medline (MDLN).
Medline, a major distributor of medical devices and supplies, began trading on the Nasdaq after raising $6.26 billion in the largest public offering of 2025. Shares of Medline surged on their first day of trading, opening well above their IPO price. Such a strong market debut for a large company in the medical field often boosted investor confidence in the entire sector, lifting related stocks.
Adding to the positive industry news, CMR Surgical received FDA clearance for its Versius Plus robotic surgical system, signaling further innovation and market opportunities in the medical technology space.
After the initial pop the shares cooled down to $40.06, up 2.2% from previous close.
Is now the time to buy CONMED? Access our full analysis report here.
What Is The Market Telling Us
CONMED’s shares are somewhat volatile and have had 13 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 12 days ago when the stock dropped 6.2% on the news that the company announced its plan to exit its gastroenterology product lines as part of a broader portfolio adjustment.
These product lines were expected to generate between $90 million and $95 million in revenue in 2025, with gross margins of approximately 45%. CONMED projected that exiting this business would improve its overall gross margin profile. The company also reaffirmed its previous financial guidance for 2025, stating it did not expect a material impact on its results. However, the stock's decline suggested investors were more focused on the loss of a significant revenue stream than the potential for improved long-term profitability from the strategic shift.
CONMED is down 40.5% since the beginning of the year, and at $40.06 per share, it is trading 45.9% below its 52-week high of $74 from February 2025. Investors who bought $1,000 worth of CONMED’s shares 5 years ago would now be looking at an investment worth $360.88.
The 1999 book Gorilla Game predicted Microsoft and Apple would dominate tech before it happened. Its thesis? Identify the platform winners early. Today, enterprise software companies embedding generative AI are becoming the new gorillas. Click here for access to our special report that reveals one profitable leader already riding this wave.
