CONMED Strengthens Sports Medicine Division with Biorez Acquisition in $85 Million Deal

CONMED Corporation (NYSE: CNMD) has inked a definitive agreement to acquire Biorez, a privately-held medical device innovator specializing in soft tissue healing solutions. The transaction marks a strategic expansion into advanced bioinductive scaffold technology, with an upfront cash payment of $85 million, complemented by performance-based earnouts reaching up to $165 million over four years.

Deal Structure and Funding

The acquisition will close in early August 2022 and is structured on a cash-free, debt-free basis, with financing drawn from CONMED’s existing credit facility. Biorez, headquartered in New Haven, Connecticut, has developed the BioBrace® Implant—an FDA-cleared bioinductive scaffold engineered to reinforce compromised soft tissue and accelerate healing processes.

Strategic Rationale Behind the Biorez Integration

The addition of Biorez’s technology addresses a critical market opportunity in sports medicine. BioBrace® represents a proprietary advancement in tissue regeneration, addressing the growing demand for innovative surgical solutions. Curt R. Hartman, CONMED’s Chief Executive Officer, characterized the move as “an important step in expanding our sports medicine capabilities,” emphasizing that BioBrace® aligns with the company’s portfolio of minimally invasive surgical platforms and supports its vision for next-generation healing solutions.

Pat Beyer, CONMED’s International and Global Orthopedics President, noted the clinical potential: “The device offers surgeons and patients a new treatment paradigm, with significant opportunities for broader clinical adoption and geographic expansion.”

Financial Impact and 2022 Outlook Revision

The acquisition is projected to contribute approximately $1 million to CONMED’s 2022 revenue guidance. However, the deal will dilute adjusted cash earnings per share by an estimated $0.10 to $0.15 in 2022 and 2023, before turning accretive in subsequent years. Consequently, CONMED has adjusted its full-year 2022 guidance for adjusted diluted earnings per share to a range of $3.25 to $3.45.

Market Positioning

Biorez’s Chief Executive Officer Kevin Rocco highlighted the synergistic potential: “Joining CONMED accelerates our ability to scale BioBrace® globally while benefiting from their established market infrastructure and surgical community relationships.”

The Biorez platform complements CONMED’s existing orthopedic and sports medicine portfolio, which spans multiple surgical specialties including general surgery, gynecology, thoracic surgery, and gastroenterology.

Transaction Advisors

Sullivan & Cromwell LLP and DLA Piper LLP served as legal counsel to CONMED, with Canaccord Genuity LLC providing financial advisory services. Biorez was represented by Shipman & Goodwin LLP, Burns & Levinson LLP, and Latham & Watkins LLP.

About CONMED: A leading medical technology provider specializing in surgical devices for minimally invasive procedures across multiple surgical disciplines.

About Biorez: A Connecticut-based medical device company focused on developing bioinductive implant technology for soft tissue regeneration.