Teleflex Launches Advanced Percutaneous Surgical System

Following the U.S. Food and Drug Administration’s (FDA) clearance, Teleflex Incorporated (NYSE:TFX) announced the launch of its second generation Percuvance Percutaneous Surgical system. This system has been recognized as the first clinical laparoscopic procedure in the U.S. recently. Next month, a chain of surgical trials will be performed in leading institutions in the U.S.

Percuvance Percutaneous Surgical system is used to execute laparoscopic procedures. It comprises reusable handles and seven disposable 5mm interchangeable tool tips which include graspers, scissors, dissector, electrocautery tools, and a Weck Hem-o-lok Polymer Ligation Clip Applier. The system helps in percutaneous insertion without the insertion trocar.

With nearly 3 million laparoscopic procedures performed each year in the U.S., we expect Teleflex to gain considerable market traction with the recent launch.

In this regard, we note that traditional laparoscopy is associated with the insertion of trocars, which becomes painful for patients while percutaneous laparoscopy is devoid of trocars which assures less trauma for patients. On the contrary, the percutaneous laparoscopy, promoted by Teleflex helps overcome complications in the surgery. The procedure is much less invasive compared to the traditional one.

The latest system can be used in both common and advanced general laparoscopic procedures like cholecystectomy, upper gastrointestinal, gastric, bariatric, colorectal and hernia. According to the company, the latest offering is more versatile and allows even less invasive procedures than its first-generation 5 mm device.

Notably, the first generation Percuvance system was launched in Mar 2015 and has already been used by 150 surgeons in the U.S. and EMEA region.

Management is confident that the Percuvance System will turn out to be the new standard of care in laparoscopic surgery. Additionally, it is expanding its sales force to promote the device among surgeon. We believe that this new system will propel top-line growth at the company.

Zanks Rank and Other Key Picks

Telefex carries a Zacks Rank #2 (Buy).

Other favorably ranked stocks in the same space include IDEXX Laboratories (NASDAQ:IDXX) , Natus Medical (NASDAQ:BABY) and CryoLife (NYSE:CRY) . All the three companies sport a Zacks Rank #1 (Strong Buy).