Teleflex and Novation Team Up - Analyst Blog

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Teleflex Incorporated ( TFX ), a global leader in medical devices used in critical care and surgery, was recently awarded an innovative technology agreement by Novation for the Arrow VPS Vascular Positioning System. The agreement effective from September 1, 2012, encompasses the VPS console and stylets, as well as pre-loaded stylets and is binding through three years.

Teleflex was awarded the agreement via the innovative technology evaluation process of Novation. Management at Teleflex is enthused about its partnership with Novation to expand its product portfolio riding on the back of innovative technologies. The agreement underlines Teleflex's initiative to reduce vascular access complications and improve quality of care.  

Novation can collaborate with member councils and crew under its Innovative Technology Program, to classify and analyze advanced or innovative technology which enhances clinical benefit. The company's Innovative Technology Program aims to cooperate with hospital members who recognize its leading-edge technology.

The technology is capable of enhancing standards of care and may curtail complications to patients or clinicians. The hallmark of an innovative technology lies in its ability to improve patient care and safety.

The innovative technology of Arrow VPS is put down to its TaperFree design which guarantees a homogeneous external diameter along the length of the catheter. It has been clinically proven that the use of Arrow VPS lowers the risk of thrombosis and other complications owing to its unique features.

The use of Arrow VPS allows clinicians to discard the requirement of an otherwise mandatory chest X-ray. This is due to the novel intravascular Doppler, ECG and advanced algorithmic logic to convey that the catheter tip has reached the desired location in the vascular space.

Teleflex, headquartered in Limerick, Pennsylvania, is a manufacturer and provider of medical devices used in critical care and surgery. Its move to divest OEM Orthopedic division along with the strategy of developing new, innovative products should help improve its financial performance in the long run. The company's focus on profitable and consistent growth with new product introduction and portfolio expansion via acquisition is expected to yield results.

However, Covidien ( COV ), C.R. Bard ( BCR ) and CareFusion ( CFN ), which operate in similar business segments, present a tough competitive landscape for Teleflex. Additionally, the company operates in a stringent regulatory environment. The demand for its products is susceptible to healthcare reimbursement systems in the domestic as well as the international market.

Teleflex currently retains a Zacks #4 Rank, which translates into a short-term Sell rating.


 
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: BCR , CFN , COV , TFX

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