), a global leader in medical devices used in critical care and
surgery, announced that the U.S. Food and Drug Administration
(FDA) has granted 510(k) clearance to its line of Weck reusable
obturators which complement the Weck Vista line of bladeless
laparoscopic access ports. The company recently unveiled its
complete Weck Access line.
This offering will enhance the company's portfolio for
laparoscopic surgical procedures under its Surgical Care segment
which contributed 18% to total revenues in 2011. Weck brand helps
clinicians to better manage general as well as advanced minimally
invasive surgeries. It is expected that Weck reusable obturators
will be preferred by clinicians as its in-built design offers
unique features to enhance efficiency and will score over
available access devices in the market.
In a separate story, Teleflex launched its Arrow FlexBlock
continuous peripheral nerve block catheter. The company plans to
begin shipping the product, which obtained the approval of the
U.S. Food and Drug Administration (FDA) earlier this year, in
The company's latest offering will annex its market-dominating
line of Arrow StimuCath continuous peripheral nerve block
catheters. Teleflex's Arrow FlexBlock will enhance its line of
Anesthesia and Airway Management products in its largest segment
- Critical Care segment. This segment accounted for 66% of total
revenues in 2011. The Anesthesia and Airway Management franchise
contributed 22% to Critical Care revenues in 2011.
The Arrow FlexBlock along with the earlier launched Arrow
SureBlock Kit and the twin acquisitions of Willemstad,
Netherlands-based LMA International N.V. and LMA's laryngeal mask
supraglottic airway business from Intavent Direct Limited
provides the company with an extensive anesthesia and airway
management portfolio. Teleflex expects incremental revenues from
the extended Anesthesia and Airway Management franchise.
Teleflex has embarked on enhancing its Arrow brand ever since the
acquisition of Arrow International in 2007. However, the failure
to protect its intellectual property and lower-than expected
market adoption of the new products may hinder the company's
Teleflex' focus on profitable and consistent growth is expected
to yield results as it continues to grow organically as well as
inorganically. The company has closed four acquisitions
year-to-date to enhance its Critical Care, Cardiac Care and
Surgical Care segment. While acquisitions remain the most
important part of Teleflex's growth strategy, these recent
announcements reflect its aggressive strategy of portfolio
extension as it transits towards a pure-play medical technology
Moreover, demographic trends and barriers to entry in the
industry are expected to bolster the organic growth rate at
Teleflex. The recent divestiture of its OEM Orthopedic division
is expected to aid the company's strategy of new product
introduction, and investment in innovative technologies.
), which operate in similar business segments, present a tough
competitive landscape for Teleflex. The demand for its products
is susceptible to healthcare reimbursement systems in the
domestic as well as international markets.
We currently have a long-term Outperform recommendation on
Teleflex. The stock carries Zacks #1 Rank, which translates into
a short-term Strong Buy rating.
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