UTICA, N.Y., July 11 /PRNewswire-FirstCall/ --
CONMED Corporation (Nasdaq: CNMD) today commented on recent activity in its
stock and responded to the July 11, 2002 publication of a study in the New
England Journal of Medicine concerning arthroscopic procedures for
osteoarthritis.
Joseph J. Corasanti, President and Chief Operating Officer, stated: "We
recognize that these times are uncertain, but are unaware of any reason
related to our Company for the recent decline in our stock price. One
possible reason which has been brought to our attention is the study released
today concerning the effectiveness of certain arthroscopic procedures intended
to relieve arthritis pain in the knee. We were not aware that such a study
was underway until it was brought to our attention, and do not endorse or
comment on any of its findings or conclusions. CONMED's arthroscopy business,
which accounts for 36% of the Company's total sales, is focused on surgeries
seeking to repair ligaments that have torn away from the bone and tears that
have occurred to the joint cartilage. These procedures are commonly referred
to as "sports medicine" procedures. Our business is not centered around the
sale of products that address the small percentage of arthroscopic procedures
intended to treat osteoarthritis pain. Accordingly, we do not believe that
any change in the number of arthroscopy procedures to treat osteoarthritis as
a result of the study will have a significant impact on our arthroscopy
business, which is marketed under the Linvatec brand name."
Mr. Corasanti continued: "Our initial analysis suggests that any reduction
in the number of arthroscopy procedures as a result of the study would relate
to an extremely small percentage of the total number of arthroscopy
procedures. We believe that the only CONMED products that may be affected by
the study are disposable shaver blades and disposable fluid tubing systems.
To the extent that surgeons are using the Linvatec shaver blades and fluid
systems to perform arthroscopy procedures for osteoarthritis, and, assuming a
worst-case scenario in which all of these procedures were no longer performed,
we believe that the maximum potential revenue loss in these product areas
would be $2.0 million on an annual basis, which is less than one half of one
percent of CONMED's annual revenues."
CONMED is a medical technology company specializing in instruments,
implants, and video equipment for arthroscopic sports medicine, and powered
surgical instruments, such as drills and saws, for orthopedic, ENT,
neuro-surgery, and other surgical specialties. The Company is also a leading
developer, manufacturer and supplier of advanced surgical devices, including
radio frequency, or RF, electrosurgery systems used routinely to cut and
cauterize tissue in nearly all types of surgical procedures worldwide, and
endoscopy products such as trocars, clip appliers, scissors, and surgical
staplers. The Company also manufactures and sells a full line of ECG
electrodes for heart monitoring and other patient care products.
Headquartered in Utica, New York, the Company's 2,500 employees distribute its
products worldwide from eight manufacturing locations.
This press release contains forward-looking statements based on certain
assumptions and contingencies that involve risks and uncertainties. The
forward-looking statements are made pursuant to the safe harbor provisions of
the Private Securities Litigation Reform Act of 1995 and relate to the
Company's performance on a going-forward basis. The forward-looking
statements in this press release involve risks and uncertainties which could
cause actual results, performance or trends, including the above mentioned
anticipated revenues and earnings, to differ materially from those expressed
in the forward-looking statements herein or in previous disclosures. The
Company believes that all forward-looking statements made by it have a
reasonable basis, but there can be no assurance that management's
expectations, beliefs or projections as expressed in the forward-looking
statements will actually occur or prove to be correct. In addition to general
industry and economic conditions, factors that could cause actual results to
differ materially from those discussed in the forward-looking statements in
this press release include, but are not limited to: (i) the failure of any one
or more of the assumptions stated above, to prove to be correct; (ii) the
risks relating to forward-looking statements discussed in the Company's Annual
Report on Form 10-K for the fiscal year ended December 31, 2001 and the
Prospectus dated May 22, 2002; (iii) cyclical purchasing patterns from
customers, end-users and dealers; (iv) timely release of new products, and
acceptance of such new products by the market; (v) the introduction of new
products by competitors and other competitive responses; (vi) the possibility
that any new acquisition or other transaction may require the Company to
reconsider its financial assumptions and goals/targets; and or (vii) the
Company's ability to devise and execute strategies to respond to market
conditions.
SOURCE CONMED Corporation
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Related links:
http://www.conmed.com
Company News On-Call:
http://www.prnewswire.com/comp/201850.html
CONTACT:
Robert Shallish, Chief Financial Officer of
CONMED Corporation, +1-315-624-3206; or Investors - Lauren Levine
or Lanie Fladell, or Media - Dan Budwick, all of Morgen-Walke
Associates, +1-212-850-5600, for CONMED Corporation
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