CONMED (CNMD) risk factors, FY2024 10-K

Other

1. 01(i) Risks Related to Our Business and the Medical Device Industry
2. 02Our financial performance is dependent on conditions in the healthcare industry and the broader economy. Our business and financial performance could be adversely affected, directly or indirectly, by a potential economic downturn
3. 03Public health crises have had, and may continue to have, an adverse effect on certain aspects of our business, financial condition, or results of operations. The nature and extent of future impacts are highly uncertain and unpredictable
4. 04Limitations on the availability of Ethylene Oxide (“EtO”) sterilization services may limit our ability to sell certain sterile products
5. 05Failure to comply with regulatory requirements may result in recalls, loss of revenues, fines or other materially adverse implications
6. 06Moreover, we are generally required to obtain regulatory clearance or approval prior to marketing a new product. The time required to obtain approvals from foreign countries may be longer or shorter than that required for FDA clearance, and requirements for such approvals may differ from FDA requirements
7. 07The highly competitive market for our products may create adverse pricing pressures
8. 08Cost reduction efforts in the healthcare industry could put pressures on our prices and margins
9. 09With a global footprint and supply chain, our results and operations could be adversely affected by raw material shortages, inflation, price increases, economic or geopolitical developments, including protectionist trade policies such as tariffs, or other events
10. 10We may not be able to keep pace with technological change or to successfully develop new products with wide market acceptance, which could cause us to lose business to competitors
11. 11Ordering patterns of our customers may change resulting in reductions in sales
12. 12The terms of our indebtedness outstanding from time to time, including our senior credit agreement, may restrict our current and future operations, particularly our ability to respond to changes or to take certain actions
13. 13We may not be able to generate sufficient cash to service our indebtedness and other obligations, and, our leverage and debt service requirements may require us to adopt alternative business strategies
14. 14Our variable rate indebtedness subjects us to interest rate risk, which could cause our debt service obligations to increase significantly
15. 15Despite our current level of indebtedness, we and our subsidiaries may still be able to incur substantially more debt. This could further exacerbate the risks to our financial condition described above
16. 16The conditional conversion features of our 2.250% Notes if triggered, may adversely affect our financial condition
17. 17The convertible notes hedge and warrant transactions that we entered into in connection with the offering of the Convertible Notes may affect the value of the Convertible Notes and our common stock
18. 18We are subject to counterparty risk with respect to the convertible notes hedge transactions
19. 19Our financial performance is subject to the risks inherent in any acquisition, including the effects of increased borrowing and integration of newly acquired businesses or product lines
20. 20The terms of any future preferred equity or debt financing may give holders of any preferred securities or debt securities rights that are senior to rights of our common shareholders or impose more stringent operating restrictions on our company
21. 21(iv) Other Risks Related to Our Business
22. 22We rely on a third party to obtain, process and distribute sports medicine allograft tissue. If such tissue cannot be obtained, is not accepted by the market or is not accepted under numerous government regulations, our results of operations could be negatively impacted
23. 23We distribute some products for third-party companies, and cannot ensure that our rights to distribute such third-party products will continue indefinitely
24. 24If we lose our patents or they are held to be invalid, or if our products or services infringe on third party patents, we could become subject to liability and our competitive position could be harmed
25. 25We may be sued for product liability claims and our insurance coverage may be insufficient to cover the nature and amount of any product liability claims
26. 26Damage to our physical properties as a result of hurricanes, tornadoes, earthquakes, fires, droughts, extreme temperatures, flooding or other natural or man-made disaster may cause a financial loss and a loss of customers
27. 27Our insurance coverage is limited to certain caps, and our insurance may not be adequate to cover future losses
28. 28Our significant international operations subject us to foreign currency fluctuations and other risks associated with operating in countries outside the United States
29. 29Our new products may fail to achieve expected levels of market acceptance
30. 30If our new products do not achieve market acceptance, we may be unable to recover our investments and may lose business to competitors
31. 31Our Board of Directors may, in the future, limit or discontinue payment of a dividend on common stock
32. 32Anti-takeover provisions in our organizational documents and Delaware law could delay or prevent a change in control
33. 33Violations of environmental, social and governance laws and regulations and climate change initiatives could materially and adversely affect our business, financial condition, and results of operations
34. 34Our ability to attract and retain qualified employees is critical to our success