Teleflex (TFX) Morgan Stanley 22nd Annual Global Healthcare Conference summary

Market trends and regional performance

• Utilization in the U.S. and Europe has returned to pre-pandemic levels, with stable environments expected to continue.

• Asia, especially China, saw double-digit growth in H1, while Korea's doctor strike temporarily slowed APAC growth.

• Hospital-owned ASCs in the U.S. are driving product usage and freeing up hospital capacity for more profitable procedures.

Product performance and innovation

• Barrigel, acquired with Palette, is outperforming expectations, leading to raised guidance and strong synergies with existing products.

• Barrigel's clinical advantage is its sculptability, achieving 94% complete coverage in studies, and registration in Japan is targeted for late Q2 next year.

• Label expansion for Barrigel could add $100M to the addressable market, with new indications expected by 2027.

Competitive and regulatory dynamics

• The intra-aortic balloon pump market is experiencing disruption after an FDA notice against a competitor, creating a share gain opportunity for at least the next two quarters.

• Hospitals are accelerating pump replacement cycles due to compliance concerns, with new pump and catheter sales expected to drive durable revenue and margin accretion.