Conmed Corporation (CNMD) has recently started the process of recalling certain products due to manufacturing defects. Products affected are PRO5 and PRO6 series battery handpieces manufactured before May 31, 2008. Also affected are certain lots of the MC5057 Universal Cable manufactured prior to Dec 1, 2006, that are used along with the company’s electric powered handpieces. All these products were manufactured by Conmed’s Linvatec unit. The company has sent letters to customers notifying about the defects and stating the process to return these products for rectification.

The PRO5 and PRO6 series battery handpieces have the risk of potential self-activating. Therefore, safe and efficient usage includes inserting the battery away from the operation site and not touching or coming into contact with moving parts while inserting the battery.

The MC5057 Universal Cable has the risk of an electric powered handpiece to potentially self-activate. Here the safe and efficient usage includes avoiding moving parts on the handpiece when the cable is inserted. Conmed has also urged its customers to refer to its handling and user instructions while using these products.

The product recall will result in a pre-tax cost of roughly $6 million in the third quarter of 2009. This will lead to further weakening of company’s already dismal bottom-line.

Conmed is a major medical products manufacturer specializing in surgical instruments and devices. Like its main competitors, Stryker Corporation (SYK) and Smith & Nephew (SNN), the company has suffered from a slowdown in sales related to elective procedures due to the current economic turbulence.

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