Teleflex Incorporated (TFX - Free Report) has obtained the approval of the U.S. Food and Drug Administration (FDA) for its Arrow UltraQuick peripheral nerve block (PNB) needles. The UltraQuik needles enhance block success for single-injection PNBs using the ultrasound approach.
This needle, along with the StimuQuick and StimuQuick Echo needles from the Anesthesia and Respiratory division under the larger Critical Care unit, provides a wide range of clinical solutions for performing PNBs. The company’s anesthetic and respiratory product lines are contributing positively to the growth of the Critical Care business, which grew by 4.5% on a constant currency basis in the last reported quarter.
Teleflex has embarked on enhancing its Arrow brand ever since the acquisition of Arrow International in 2007. The acquisition has significantly bolstered single-use product offerings for critical care from Teleflex and expanded its global reach.
Limerick, Pennsylvania-based Teleflex is a global leader in medical devices used in critical care and surgery. The company focuses on profitable and consistent growth and is expected to yield results. The company envisages its sales growth to surpass the market growth. It also plans to gain market share in key product areas.
Product innovation is the driving force for Teleflex. Contributions from new products in the most recent quarter reflect gains from the company’s increased focus on research and development. However, the failure to protect its intellectual property and lower-than-expected market adoption of the new products may hinder its growth.
Teleflex operates in a highly competitive medical devices industry and the implementation of the medical devices tax from this year is likely to put additional pressure on its bottom line. Further, 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.
The stock carries a Zacks Rank #3 (Hold). Medical instrument companies, such as Cantel Medical Corp. , Delcath Systems, Inc. and Cyberonics Inc. with Zacks Rank #1 (Strong Buy), are expected to do well.