• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • Advertise
  • Subscribe

MassDevice

The Medical Device Business Journal — Medical Device News & Articles | MassDevice

  • Latest News
  • Technologies
    • Artificial Intelligence (AI)
    • Cardiovascular
    • Orthopedics
    • Neurological
    • Diabetes
    • Surgical Robotics
  • Business & Finance
    • Wall Street Beat
    • Earnings Reports
    • Funding Roundup
    • Mergers & Acquisitions
    • Initial Public Offering (IPO)
    • Legal News
    • Personnel Moves
    • Medtech 100 Stock Index
  • Regulatory & Compliance
    • Food & Drug Administration (FDA)
    • Recalls
    • 510(k)
    • Pre-Market Approval (PMA)
    • MDSAP
    • Clinical Trials
  • Special Content
    • Special Reports
    • In-Depth Coverage
    • DeviceTalks
  • Podcasts
    • MassDevice Fast Five
    • DeviceTalks Weekly
    • OEM Talks
      • AbbottTalks
      • Boston ScientificTalks
      • DeviceTalks AI
      • IntuitiveTalks
      • MedtechWOMEN Talks
      • MedtronicTalks
      • Neuro Innovation Talks
      • Ortho Innovation Talks
      • Structural Heart Talks
      • StrykerTalks
  • Resources
    • About MassDevice
    • DeviceTalks
    • Newsletter Signup
    • Leadership in Medtech
    • Manufacturers & Suppliers Search
    • MedTech100 Index
    • Videos
    • Webinars
    • Whitepapers
    • Voices
Home » ConMed responds to activist investor

ConMed responds to activist investor

November 12, 2013 By Brad Perriello

ConMed responds to activist investor

ConMed (NSDQ:CNMD) today responded to a long and critical letter from Voce Capital Management issued last week that demanded steps toward a strategic exit and the end "a culture of nepotism, patronage and dystopian corporate governance."

Voce, which owns a roughly 1% stake in ConMed, described the company as run and ruined by the Corasanti family, highlighting several high-level officers with ties to company founder, former CEO and current chairman and vice chairman Eugene Corasanti, who in 2006 handed the corner office to his son, Joseph Corasanti.

The letter also questioned the Corasantis’ loyalty to shareholders, given that the family collectively holds about 0.7% of ConMed’s shares, and further thrashed the company’s M&A strategy, which Voce says is based on "more sentimental than economic value."

Today ConMed replied by highlighting several financial measures as evidence of "the strong operating performance delivered by ConMed over the past several years."

"We remain open to evaluating any potentially value-enhancing opportunities," lead independent director Mark Tryniski wrote, according to a regulatory filing. "Consistent with our fiduciary duty, we have considered your comments in great detail. Currently, we are focused on executing our business strategy, which the board believes is in the best interests of all shareholders."

Tryniski emphasized that ConMed’s cash from operating activities reached $251.8 million from January 2011 through September 2013, for a 12.3% return on sales; adjusted earnings-per-share growth of 30% in 2010, 15% in 2011 and 20% in 2012; adjusted earnings before interest, taxes, debt and amortization growth of 410 basis points or 30.8% for the 3 years ending December 2012; and reduced operating expenses from the consolidation of 4 plants and "by employing lean manufacturing practices."*

As for shareholder returns, Tryniski cited "the 2%+ cash dividend yield" and share repurchases of more than $63 million during the last 3 years.

"Including the cash dividend, total shareholder return for the 10-month period ending Oct. 31, 2013, was 31.9%," he wrote.

"The board’s process for reviewing the company’s governance practices and strategic direction is thorough and thoughtful," Tryniski wrote. "We welcome and respect the views of all of our shareholders. We remain open to evaluating any potentially value-enhancing opportunities."

ConMed missed analysts’ expectations for the 3 months ended Sept. 30 and lowered its forecast for the rest of the year.

The Utica, N.Y.-based device maker posted profits of $5.7 million, or 21¢ per diluted share, on sales of $179.3 million during the 3 months ended Sept. 30, 2013. That compared with profits of $9.3 million, or 32¢ per diluted share, on sales of $181.9 million during the same period last year. Adjusted earnings were reported at 40¢, on par with analysts’ expectations.*

ConMed also lowered its 2013 guidance, saying it now expecting 4th-quarter sales of $195 million to $200 million and full-year sals of $754 million to $759 million, down from prior guidance of $770 million to $775 million.

CNMD shares have gained 2.9% since the Nov. 4 letter from Voce and its concurrent earnings release, reaching $37.32 apiece as of about 11:30 a.m. today, for a 0.2% gain on the day.

*Correction, Nov. 13, 2013: This article originally mis-stated the percentage gain of EBITDA for ConMed during that period. Return to the corrected sentence.

Filed Under: News Well, Wall Street Beat Tagged With: ConMed Corp., Voce Capital Management

More recent news

  • Comphya raises CHF 7.5 million for neurostim to treat ED
  • Fujifilm launches intelligent automation features for digital radiography
  • Integer appoints former iRhythm CEO to board
  • MMI debuts robotic surgery instruments, digital surgery platform
  • Synchrony Medical wins FDA nod for airway clearance system

Primary Sidebar

“md
EXPAND YOUR KNOWLEDGE AND STAY CONNECTED
Get the latest med device regulatory, business and technology news.

DeviceTalks Weekly

See More >

MEDTECH 100 Stock INDEX

Medtech 100 logo
Market Summary > Current Price
The MedTech 100 is a financial index calculated using the BIG100 companies covered in Medical Design and Outsourcing.
MDO ad

Footer

MASSDEVICE MEDICAL NETWORK

DeviceTalks
Drug Delivery Business News
Medical Design & Outsourcing
Medical Tubing + Extrusion
Drug Discovery & Development
Pharmaceutical Processing World
MedTech 100 Index
R&D World
Medical Design Sourcing

DeviceTalks Webinars, Podcasts, & Discussions

Attend our Monthly Webinars
Listen to our Weekly Podcasts
Join our DeviceTalks Tuesdays Discussion

MASSDEVICE

Subscribe to MassDevice E-Newsletter
Advertise with us
About
Contact us

Copyright © 2025 · WTWH Media LLC and its licensors. All rights reserved.
The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of WTWH Media.

Privacy Policy