ConMed to acquire Connecticut startup

ConMed Corp. (NYSE: CNMD), a medical-device manufacturer with roots in the Utica area, announced it will acquire privately held Biorez, Inc., on a cash-free, debt-free basis for $85 million, with up to an additional $165 million in growth-based earnout payments over a four-year period.

The company expects to finance the deal through its existing credit facility and close the deal in early August.

“The addition of Biorez and its BioBrace platform represents an important step forward for our sports medicine portfolio,” ConMed Board Chair, President, and CEO Curt R. Hartman said in a release announcing the deal. “BioBrace fits seamlessly into our existing suite of products, and we are excited to advance the next generation of healing in sports medicine. BioBrace represents the type of high-growth, high-margin platform that drives our long-term vision for ConMed.”

Based in New Haven, Connecticut, Biorez is a medical-device startup focused on advancing the healing of soft tissue using its proprietary BioBrace Implant technology. The technology, which reinforces soft tissue where weakness exists and facilitates healing, is FDA-cleared to use in multiple product sizes.

ConMed recently reported a net loss of $168.3 million on sales of $277.2 million in the second quarter. During the three-month period, the company also closed on its acquisition of Memphis company In2Bones.

ConMed executives expect this latest acquisition to add about $1 million in revenue to the full-year guidance of $1.095 billion to $1.140 billion provided during the earnings conference call for the second quarter.

The acquisition will dilute company earnings per share (EPS) by 10-15 cents in 2022 and 2023 but then start adding to earnings after that. As a result, ConMed forecasts full-year EPS in the range of $3.25-$3.45 for 2022, down from previously released guidance of $3.40-$3.55.

“Kevin and his team have created an extraordinary biomedical device that can improve the standard of care in sports medicine procedures,” Pat Beyer, ConMed’s president of international and global orthopedics, said in the release. “I look forward to working closely with the Biorez team and leveraging their technical experience as we work to generate clinical data and bring this product to a broader group of customers and patients.”

ConMed manufactures surgical devices and equipment for minimally invasive procedures for surgical areas including orthopedics, general surgery, gynecology, neurosurgery, thoracic surgery, and gastroenterology. The company moved its corporate headquarters from 525 French Road in New Hartford to Largo, Florida in 2021. It maintains manufacturing, finance, human resources, legal, and other corporate functions at the New Hartford facility.