Conmed (NSDQ:CNMD) announced that it will acquire In2Bones Global for more than $145 million after it posted first-quarter results that beat the overall consensus on Wall Street.
The Largo, Florida–based minimally invasive medical device company on yesterday evening reported profits of $14.96 million, or 47¢ per share, on sales of $242.3 million for the three months ended March 31, 2022. The results represented a bottom-line gain of 51.9% on sales growth of 4.15% compared with Q1 2021.
Adjusted to exclude one-time items, earnings per share were 63¢, 1¢ ahead of The Street, where analysts were looking for sales of $242.3 million.
“I am pleased with our start to the year as we generated momentum and finished the quarter on a strong note,” CEO Curt Hartman said in a news release. “While we are facing larger than anticipated inflationary pressures, we remain confident in our longer-term prospects for both top and bottom-line growth.”
Conmed expects revenue for fiscal year 2022 to be in the range of $1.105 billion and $1.150 billion, an increase from its previous guidance of $1.075 billion and $1.125 billion. It anticipates adjusted diluted net earnings per share in the range of $3.50 to $3.65.
The company plans to acquire upper extremities device maker In2Bones Global for $145 million at closing — and up to an additional $110 million in growth-based earnout payments over a four-year period. The acquisition is subject to customary closing conditions, including U.S. regulatory approval. Conmed said in an SEC filing that it expects approximately $20 million in revenue in the back half of the year related to the acquisition of In2Bones.
“This acquisition is a natural strategic extension of our orthopedic portfolio,” Hartman said. “In2Bones is an exciting platform for Conmed to enter the extremities market given its broad portfolio, extensive sales channel, and experienced leadership team. We look forward to welcoming the In2Bones team to Conmed.”
Shares in CNMD were down 12.24% to $122.44 apiece in afternoon trading. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — was down 3.2%. Today, the Dow Jones Industrial Average was down more than 3%, more than 1,100 points, as investors reevaluated the economic effects of the Federal Reserve’s plans to combat inflation.