Teleflex Incorporated ( TFX - Snapshot Report ) , 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.

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.

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. Another factor weighing on the company is that 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 a Zacks #1 Rank, which translates into a short-term Strong Buy rating.