Teleflex Incorporated (TFX - Free Report) has partnered with Intuitive Surgical Inc. (ISRG - Free Report) to produce Weck disposable trocar seals and obturators for the latter’s latest da Vinci Xi Surgical System. The Weck brand seals and trocars are based on Teleflex’s Weck Vista Bladeless Access Ports, used in laparoscopic surgeries. Following the announcement by Teleflex, shares of Teleflex and Intuitive Surgical rose 4.7% and 1.1%, respectively.
The partnership will help surgeons perform robotic surgeries by taking advantage of a differentiated technology such as Weck by Teleflex. On the other hand, the partnership will help Teleflex expand its market reach by associating with a strong brand such as da Vinci Xi.
Teleflex’s Weck Vista Access portfolio provides the widest offering of primary entry access ports, including optical ports with uniquely designed ridged cannulas, broad variety of balloon and cone open access ports, standard ridged and smooth cannula access ports.
The da Vinci Xi System has been made commercially available since April 1 this year. According to Intuitive Surgical, the new robotic system has longer instrument shafts enabling greater reach for surgery. The robotic arms of the system are also smaller and thinner and have a new joint design that improves their range of motion.
The system also features an overhead instrument arm design providing surgeons anatomical access from any position, a digital endoscope architecture that provides improved vision and clarity, and an ability to attach the endoscope to any arm, providing flexibility for visualizing the surgical site.
Teleflex posted a 15.1% rise in adjusted earnings to $1.22 per share for the first quarter of 2014 from $1.06 in the same quarter of 2013. With this, earnings beat the Zacks Consensus Estimate by 6 cents per share. Adjusted net earnings rose 19.6% to $53.0 million from $44.3 million in the year-ago quarter.
Net revenues went up 6.5% to $438.5 million, exceeding the Zacks Consensus Estimate of $434 million. Excluding foreign exchange fluctuations, net revenues rose 6.0% from the prior-year quarter.
Intuitive Surgical posted a 41.4% fall in adjusted earnings per share to $2.67 for the first quarter from $4.56 in the same quarter of 2013. With this, the robotic surgical systems maker’s earnings lagged the Zacks Consensus Estimate by a wide margin of 67 cents.
Net earnings ebbed 44.8% to $104.3 million from $188.9 million in the 2013-first quarter. The adjusted figures excluded the impact of deferral of revenues related to a customer trade-out program for their recently purchased da Vinci Si Surgical Systems with the company’s new da Vinci Xi Surgical System as well as product liability litigation charges.
Currently, Teleflex retains a Zacks Rank #3 (Hold) while Intuitive Surgical carries a Zacks Rank #5 (Strong Sell). Some better-ranked scrips in the medical instruments industry include Accuray Incorporated (ARAY - Free Report) and Masimo Corporation (MASI - Free Report) , both carrying a Zacks Rank #2 (Buy).