), a global leader in medical devices used in critical care and
surgery, continues to expand its portfolio. The company recently
gained 510(k) approval from the U.S. Food and Drug Administration
(FDA) for its subsidiary Semprus BioSciences' innovative vascular
access catheter, the Nylus Peripherally Inserted Central Catheter
(PICC) with Semprus Sustain Technology. Teleflex had obtained
European CE Mark for the offering in July 2012.
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The Nylus PICC was included in Teleflex' portfolio with the
acquisition of Semprus Biosciences in June 2012. As a result of
this acquisition, the Semprus Sustain Technology is a part of
Teleflex' intellectual property portfolio.
The FDA approval is immensely beneficial to patients as well as
clinicians as the Nylus PICC has features which curtail the
attachment of blood proteins and platelets at the surface of the
medical device, an occurence which leads to thrombus formation.
The novel Semprus technology is thereby well aligned for a broad
array of products that can reduce thrombus-related complications
and infections in patients. The Semprus technology can also help
in decreasing substantial healthcare costs associated with
medical device implants.
We are encouraged to note that Teleflex continues to roll out new
products to enhance its vascular access and anesthesia franchise.
We believe that aggressive portfolio extension has been the crust
of the company's growth profile. The view is supported by the 150
basis point contribution from new product introductions to sales
growth in the third quarter.
Meanwhile, the recent divestiture of its OEM Orthopedic division
will allow Teleflex to leap on the growth trajectory as it is
expected to aid the company strategy of new product introduction,
and investment in innovative technologies. Moreover, demographic
trends and barriers to entry in the industry should bolster
Teleflex' organic growth rate.
), which operate in similar business segments, present a tough
competitive landscape for Teleflex. Another factor weighing on
the company is that demand for its products is susceptible to
healthcare reimbursement systems in the domestic as well as
We currently have a long-term 'Outperform' recommendation on
Teleflex. The stock carries a Zacks #1 Rank, which translates
into a short-term Strong Buy rating.