Teleflex: A Tale of Two Strategics
If you thought February would come to a quiet close, think again.
On February 27th, Teleflex made two major announcements:
We'll explore BIOTRONIK 's divestiture in next week's edition of The Numbers.
Teleflex is an established leader know for its innovative solutions in critical care, surgery, anesthesia, and interventional procedures. Its flagship brands, like Arrow? for vascular access, LMA? for airway management, and UroLift? for interventional urology, have won it a substantial market share across multiple sectors.
Teleflex's strength lies in its diversified portfolio of high-margin devices addressing unmet clinical needs. The company has historically benefited from a broad revenue base, reducing dependence on any single market.
Its commitment to innovation and strong track record of successful acquisitions have driven long-term growth, and solidified its position as a trusted partner for healthcare providers worldwide.
Now, Teleflex is embarking on a strategic transformation. The split aims to accelerate growth through a simplified operating model and increased management focus. What do The Numbers reveal about this decision and what may be ahead for Teleflex?
The Numbers Behind These Markets
In splitting its core businesses into two companies, there's some new nomenclature we need to use to keep things straight:
Teleflex has long been a major player in the markets targetted by RemainCo, generating an estimated $1.32B in FY24 from its vascular access and interventional segments. The BIOTRONIK vascular acquisition strengthens its position, particularly in the high-growth interventional business, which saw 14.6% YoY growth in 2024.
According to LSI’s Market Analysis and Projections, a global marketing sizing and opportunity analysis database covering hundreds of markets, the Interventional Cardiology and Peripheral Vascular/Endovascular device markets are set for strong growth through 2029, with CAGRs of 6.5% and 7.3%, respectively.
These segments both are on par with, or outpace, Market Intelligence, by LSI 's projection for the global medtech market’s 6.6% CAGR over the same period.
Notably, the Peripheral Vascular devices market, valued at $7.8B in 2024, is on track to nearly double by 2030, driven by the adoption of safer, more effective revascularization techniques an the rising prevalence of peripheral arterial disease (PAD), which now affects an estimated 250 million people.
Both subsegments remain highly fragmented, led by major players: 雅培 , 波科 , and 美敦力 in Interventional Cardiology; 美国BD公司 , 波科 , and 美敦力 in Peripheral Vascular. Strong competitors, but room for competition.
NewCo will commercialize Teleflex’s interventional urology, acute care, and OEM solutions, which collectively generated $1.73B in FY24.
When we dive into the specific business units, we see Teleflex dominates the BPH implant market, with a popular minimally invasive alternative for symptomatic BPH. Despite new entrants, it holds an estimated 90% share of the $360M global market, which is projected to grow at an 8.0% CAGR through 2029 as more men seek alternatives to TURP.
The Acute Care segment of NewCo is also well-positioned for growth in the $10.1B Anesthesia and Critical Care Devices market, which continues to see strong demand.
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Restructure to Grow
Whether it's a move to spinoff specific business units like Stryker , 美敦力 , and Zimmer Biomet , or moves to spinoff entire medtech or healthcare businesses like 强生公司 , Danaher Corporation , 通用电气 , and 3M 公司 , these strategic moves have been a defining category of headlines in the post COVID-19 era of medtech.
While there are many strategic and financial motivations for spinoffs, Teleflex's stated goal in this restructure is to create independent entities with management that will be better aligned to focus on their respective, high-growth markets.
Take the case of Zimmer, and the ZimVie spinoff. The company believed there was greater growth potential to be realized for its dental and spine businesses if operated under separate leadership. Growth in these segments had slowed.
In a previous edition of The Numbers covering Stryker's recent agreement to sell its U.S. Spinal Implants business to the Viscogliosi Bros., LLC, and forecasted a modest 3.9% CAGR for the global spine device market from 2024 to 2029.
Zimmer has seen positive adoption of its ROSA robotic platform with hip and knee implants, but adoption in spine has been sparse. By decoupling ROSA and the stalled spine business, ZimVie aimed to develop a novel, more tailored strategy to breathe life (and growth) in its spine business.
Teleflex's move has a similar ethos in creating two companies to compete more effectively in key growth areas, aligning with market dynamics that favor specialization and agility.
This will be an interesting trend to follow, as many of these divestitures and spinoffs came in the doldrums of medtech M&A that we saw in the years after COVID-19. With the momentum from 2024 and strategic M&A off to a hot start in 2025, how will the strategy shift?
Teleflex's transaction is expected close in 2026. We look forward to following the new companies closely, and assessing the impact that this will have across the industry.
Companies to Watch
As Teleflex looks to grow with its refocuses new companies, we’re also tracking a number of emerging companies that are developing their own innovative technologies.
Through LSI's global partnering events (LSI USA, LSI Europe, LSI Asia), we have a front row seat to the leading innovators in medtech, and continue to track industry-wide private companies and deals in our Companies & Deals Database.
In the growing Peripheral Vascular devices market, early-stage #LSIAlumni STENTiT is one to watch. Focused on the development of regenerative endovascular implants, the company's technology will be bioresorbable and capable of activating the body's naturally healing response to restore diseased arteries from the inside-out.
In April 2024, STENTiT CEO & Co-Founder Bart Sanders announced the close of a $1.9 million seed round to fund pre-clinical development and batch production of its?regenerative stent. The round included Dutch investors Nextgen Ventures , Brabant Development Agency (BOM) and the Ten Cate Investment Company.
We're also keeping close tabs on Butterfly Medical , developers of an innovative, implantable device for the treatment of Benign Prostatic Hyperplasia (BPH). As current COO and founding CEO Idan Geva explains, the company is confident it has developed a true next-generation product:
"What we've developed is the only implant of its kind that is designed to fit the anatomy of the prostate and retract the lateral lobes. The procedure is very intuitive...and unlike current "minimally invasive" solutions, [our solution] does not require cutting, burning, or piercing the tissue, making it truly minimally invasive. It's an easier procedure, easier extraction if needed, and can be done in the hospital, an ASC or a physician's clinic."
Great technology is a piece of the puzzle. However, as Idan explains, the commercial dynamics and landscape at play present a ripe opportunity:
"In the US it's a very attractive...you can reach a large portion of the market through a very small number of access points. You don't need huge sales development to get into this market. The market already knows minimally invasive, we are introducing a better approach. Reimbursement already exists in very high numbers for minimally invasive BPH treatment. So we are riding this trend."
In April 2024, the company brought on Patrick MacCarthy , who previously ran the urology and gynecology business for Olympus Corporation , a market leader in surgical treatment for urology. The company has its CE mark, and projects it will receive its getting FDA clearance in early 2026. At LSI Europe '24, Patrick summed up the company's outlook well:
"We have a procedure and technology that are clinically de-risked, over 350 patients treated, a pivotal IDE study that is nearing completion of enrollment, technically de-risked, and, we believe, vastly superior to other treatment options."
You can view the company's presentations from LSI USA and LSI Europe on our website:
Other companies to watch include:
Spiro Robotics #LSIAlumni
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Until next week,
All data in this article is sourced from LSI's Market Intelligence Team