Teleflex Acquires BIOTRONIK's Vascular Intervention Business, Stock Up

Teleflex TFX recently completed its previously announced acquisition of the majority of BIOTRONIK SE & Co. KG’s Vascular Intervention business. The acquisition significantly expands the company’s interventional access product line with a wide range of therapeutic offerings, driving an enhanced global presence in the cath lab.

As mentioned in the deal, Teleflex paid €760 million in cash, less certain adjustments, including certain non-transferring working capital and other customary terms.

TFX Stock’s Likely Trend Following the News

Following the July 1 announcement, shares of Teleflex rose 2.9%, closing the session at $121.83. The acquired business is rooted in robust research and development, clinical expertise and global manufacturing capabilities, which are expected to bolster Teleflex’s innovation pipeline and position it to participate in the emerging potential for resorbable scaffold technologies. We expect the development to positively boost the market sentiment surrounding TFX stock. 

Teleflex has a market capitalization of $5.38 billion. The company’s earnings yield of 10.9% compares favorably with the industry’s -3% yield. In the trailing four quarters, it delivered an average earnings surprise of 1.9%. 

Importance of TFX’s New Acquisition

The acquired Vascular Intervention business consists of a comprehensive and differentiated portfolio of coronary and peripheral interventions used in the cath lab and interventional radiology suites. In coronary vascular interventions, key products include the Pantera Lux Drug-Coated Balloon Catheter, the novel PK Papyrus Covered Coronary Stent for acute coronary artery perforations, and the Orsiro Mission Drug Eluting Stent, an ultrathin drug-eluting stent with differentiated clinical features.

For peripheral interventions, the portfolio includes the Passeo-18 Lux Peripheral Drug-Coated Balloon Catheter, Dynetic-35 Balloon-Expandable Cobalt Chromium Stent, the Pulsar-18 T3 Self-Expanding 4F Stent and the Oscar peripheral multifunctional catheter system.

In addition, the acquisition allows Teleflex to invest in and expand the clinical trial program for Freesolve — a sirolimus-eluting Resorbable Metallic Scaffold technology, including plans to initiate a U.S. pivotal study. Freesolve received its CE Mark in February 2024 and is indicated for de novo coronary artery lesions in CE-mark accepting countries.

TFX’s Outlook Following This Acquisition

Following the earlier-than-expected completion of the Vascular Intervention acquisition, Teleflex expects the acquired products to generate revenues of €177 million ($204 million) in the second half of 2025, including €91 million ($105 million) in the fourth quarter. From 2026 onward, these products are expected to deliver annual constant currency revenue growth of 6% or better.

Excluding non-recurring purchase accounting items, and other acquisition and integration-related costs, the transaction is likely to be approximately $0.10 accretive to the company’s adjusted earnings per share in the first year and increasingly accretive in subsequent years.

Industry Prospects Favoring TFX

Per a Research report, the vascular intervention medical devices market was valued at $5.1 billion in 2024 and is set to grow at a compound annual growth rate (CAGR) of 7.1% through 2033. Key drivers of the market’s growth include the increasing prevalence of cardiovascular diseases, advancements in technology and a growing aging population. The inclusion of vascular intervention devices into educational programs is also helping foster a new generation of skilled professionals.

More Updates From Teleflex

Last month, Teleflex announced findings from a new multinational study highlighting the effectiveness of Arrow Chlorhexidine-Impregnated Central Venous Catheters (CVCs). This prospective cohort study included more than 6,670 patients from 12 Intensive care units in eight hospitals across India, Malaysia, Papua New Guinea, Colombia, Egypt and Turkey. Outcomes include a 70.5% reduction in the incidence of CLABSI in patients with Arrowg+ard Blue and Arrowg+ard Blue Plus CVCs compared to plain (non-impregnated) catheters.

TFX Stock Price Performance

In the past three months, TFX shares have declined 7.8% against the industry’s 10.9% rise.

TFX’s Zacks Rank and Key Picks

Teleflex currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the broader medical space are Phibro Animal Health PAHC, Boston Scientific BSX and Cencora COR. While Phibro Animal Health sports a Zacks Rank #1 (Strong Buy), Boston Scientific and Cencora each carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Estimates for Phibro Animal Health’s fiscal 2025 earnings per share have jumped 5.2% to $2.04 in the past 30 days. Shares of the company have rallied 63% in the past year compared with the industry’s 15.3% growth. Its earnings yield of 7.9% compares comfortably with the industry’s 0.2% yield. PAHC’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 30.6%.

Estimates for Boston Scientific’s 2025 earnings per share have remained constant at $2.91 in the past 90 days. Shares of the company have surged 36.2% in the past year compared with the industry’s growth of 15.4%. BSX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 8.8%. In the last reported quarter, it delivered an earnings surprise of 11.9%.

Cencora shares have rallied 30.9% in the past year. Estimates for the company’s fiscal 2025 earnings per share have increased 0.4% to $15.81 in the past 30 days. COR’s earnings beat estimates in each of the trailing four quarters, the average surprise being 6%. In the last reported quarter, it posted an earnings surprise of 8.3%.

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This article originally published on Zacks Investment Research (zacks.com).

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