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Teleflex (TFX) Gains FDA Approval for TrapLiner Catheter

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Based in Wayne, PA, Teleflex Incorporated (TFX - Free Report) , a global provider of medical technologies, recently announced 510(k) clearance for its TrapLiner Catheter from the US FDA for a full fledged commercial launch in the country. Meanwhile we note that TrapLiner has been developed by Vascular Solutions, which was acquired by Teleflex on Feb 17, 2017.

The Trapliner Catheter is a modified version of Vascular Solutions’ flagship GuideLiner Guide Extension Catheter used for angioplasty. Notably, the device can be used as an alternative to the already existing ‘trapping technique’ that requires the use of a percutaneous transluminal coronary angioplasty (PTCA) balloon to replace an existing over-the-wire catheter while maintaining guidewire position.

Stock Performance

Since the announcement, Teleflex witnessed a nominal 0.3% increase in its share price to $184.01 on Feb 22.

The price performance of Teleflex has been robust. Over the last three months, the stock added 21.7%, much higher than the Zacks classified Medical Instrument sub-industry’s gain of 6.8%. Furthermore, the current return of the stock is ahead of the S&P 500’s 6.2% over the same time frame.

On the flip side, the company’s recent earnings estimates have been dismal. The current quarter has seen four estimates move south in the past 60 days compared to no movement in the opposite direction. As a result, the current quarter estimates dropped almost 1% to $2.08.

These mixed sentiments justify the stock’s Zacks Rank #3 (Hold).

Bottom Line

Taking the latest regulatory progress into consideration, the bountiful opportunities in the global angioplasty balloons market buoy optimism. In this regard, an analysis by the Zion Market research projects the niche market to generate revenue worth $2.41 billion by 2021, multiplying at a CAGR of around 4.3%

Of late, Teleflex has been gaining traction in the niche markets, courtesy of a plethora of regulatory approvals. The company received FDA clearances for its Arrow Midline with Chlorag+ard Technology, Arrow JACC and TightTrack tunneler platforms as well.

The company also recently announced the launch of LMA Gastro Airway with Cuff Pilot Technology. Furthermore, the recent receipt of 510(k) approval from the U.S. FDA for its Arrow VPS Rhythm device for commercial use is a strong positive in our view (read more: Teleflex Launches LMA Gastro Airway, FDA Okays Arrow VPS).

Stocks to Consider

Better-ranked stocks in the broader medical sector include Glaukos Corporation (GKOS - Free Report) , Avinger, Inc. (AVGR - Free Report) and Fluidigm Corporation . Notably, Glaukos and Fluidigm sport a Zacks Rank #1 (Strong Buy) while Avinger carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Glaukos Corporation has a long-term expected earnings growth rate of approximately 25%. Notably, the stock represents an impressive one-year return of 180.4%.

Avinger projects sales growth of 30.7% for the current year. Additionally, the company posted a positive earnings surprise of 27% in the last quarter.

Fluidigm Corporation has a long-term expected earnings growth rate of 25%. The stock has added 6.08% over the last one year.

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