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Teleflex Takes Up Online Marketing

by Zacks Equity Research

September 11, 2012 | Comments : 0 Recommended this article: (0)

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Recently, Teleflex Incorporated ( TFX - Snapshot Report ) , a global leader in medical devices used in critical care and surgery, launched its latest online catalog for Hudson RCI Respiratory products. The intuitive catalog is available on the company website.

Through its Teleflex Medical division, the company develops and provides various brands of products such as Hudson RCI, Rusch and Arrow among others. Teleflex is marketing its respiratory and anesthesia products under the Hudson RCI brand since July, 2004.

The Hudson RCI brand provides a wide portfolio which includes oxygen therapy products, aerosol therapy products, passive humidification and filtration products, active humidification and breathing circuits, resuscitation bags, incentive spirometers and adaptors and connectors. The online catalog encompassing these products is compatible with traditional desktops as well as other high-end smartphones, gadgets and tablets including Apple Inc.’s ( AAPL - Analyst Report ) iPad.

According to Teleflex, the online catalog will provide a convenient, 24 hour access to the consumers. It is also expected to build customer relationships as the web provides an interactive medium to the company.

Not only the online catalogs are more flexible and inexpensive, they also offer a wider access to customers as the internet connects millions of global citizens. It will also allow Teleflex to easily and frequently update product and price information for prospective customers.

Aided by this online marketing initiative, Limerick, Pennsylvania-based Teleflex might be able to gain an edge over its competitors and bolster its top line. The company’s strategy to develop new, innovative products along with the divestiture of its OEM Orthopedic division should help improve its financial performance in the long run. The company’s focus on profitable and consistent growth along with the introduction of new products as well as portfolio expansion via acquisitions is expected to yield results.

However, Covidien ( COV - Analyst Report ) , C.R. Bard ( BCR - Analyst Report ) and CareFusion ( CFN - Snapshot Report ) , 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 #3 Rank, which translates into a short-term Hold rating.

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