Teleflex at Morgan Stanley Conference: Strategic Reorganization and Growth Plans

On Tuesday, 09 September 2025, Teleflex Incorporated (NYSE:TFX) participated in the Morgan Stanley 23rd Annual Global Healthcare Conference. CEO Liam Kelly outlined Teleflex’s strategic reorganization, highlighting the integration of BioTronic Vascular and potential future plans for NewCo. While the company is optimistic about growth opportunities, challenges such as China’s volume-based procurement (VBP) were also discussed.

Key Takeaways

• Teleflex is considering a sale or spin-off of NewCo to maximize shareholder value, with a decision expected in 2026.
• The integration of BioTronic is on track, with expected revenue synergies of over $200 million in the second half of the year.
• RemainCo is targeting a 6% growth rate, driven by the interventional business, despite challenges in China.
• The OEM business is expected to decline this year but shows signs of recovery in 2026.
• UroLift market stabilization is anticipated with potential reimbursement improvements.

Financial Results

• BioTronic BI Revenue: Expected to contribute over $200 million in the second half of the year, with $99 million anticipated in Q3.
• RemainCo Growth Target: Aiming for a 6% growth rate, excluding the impact of China’s VBP.
• OEM Business: Projected to decline in the low double-digit range for the year.
• Market Opportunities: Teleflex operates in a $10 billion cath lab market and a $30 billion broader market.

Operational Updates

• BioTronic BI Integration: Progressing well with no surprises; sales and commercial entities have been integrated.
• Vascular Business: Anticipating improved performance due to PICC market penetration and distributor orders.
• Interventional Business: Meeting expectations with strong performances from complex catheters and the OnControl product.
• Surgical Business: Titan stapler is growing double digits, despite market declines due to GLP-1 drugs.
• Baragel: Approved in Japan and expanding indications for post-radical prostatectomy.
• OEM Business: Order rates have improved, suggesting a nearing end to destocking.
• UroLift: Encouraged by potential reimbursement changes that could enhance profitability.

Future Outlook

• Separation (Sale or Spin): Decision expected in 2026, focusing on maximizing shareholder value.
• RemainCo Growth: Targeting 6% growth, driven by interventional segments.
• Vascular Business: Growth expected from PICC market penetration and the return of the endurance catheter.
• China VBP: Impact expected to be transitory, largely resolved by 2026.
• OEM Business: Pathway to recovery anticipated in 2026.
• UroLift: Aiming to stabilize market with reimbursement improvements and re-engagement with urologists.

Q&A Highlights

• Strategic Reorganization: Significant interest in NewCo from financial sponsors and strategic buyers.
• BioTronic BI Integration: No surprises in the first ten weeks, with revenue synergies and geographic expansion opportunities.
• Titan Stapler: Demonstrating double-digit growth and clinical evidence to reduce GERD.

For further details, readers are encouraged to refer to the full transcript below.

Full transcript - Morgan Stanley 23rd Annual Global Healthcare Conference:

Patrick, MedTech Team, Morgan Stanley: K. Let’s kick it off. Thanks so much, everyone. Day two, Morgan Stanley Global Healthcare Conference. Patrick, I’m obviously on the MedTech team.

I have no idea where the where disclosures thing goes, but it’s morgansmiley.com/researchdisclosures. Given I’ve read that out about 20 times now today, so, I’m sure you can all go there and have a really good time. But what is, good to have is Liam, have him from Telflex as CEO. So thank you so much for agreeing to do this.

Liam Kelly, CEO, Teleflex: It’s our pleasure to be here, and thanks for having us. Yeah.

Patrick, MedTech Team, Morgan Stanley: Appreciate it. I mean, predictable topic to start with. But, you know, you guys announced that recently a lot of changes, one of which was the strategic, decision to reorganize the business. You know, from from a SpinCo, RemainCo, and that whole process, what are we up to at this point?

Liam Kelly, CEO, Teleflex: Yeah. So, first of all, I’ll just start by saying, our our North Star guiding principle is to release shareholder value. So, we began this process, so we announced the separation, on our q four earnings call, and, we said that we were gonna separate through a spin knowing that we anticipated we get some inbound interest. And, when we got to our q one earnings call, of course, we had had inbound interest. And then as recently as our q two, earnings call, we updated the investment community on that level of interest.

So, again, we’re we’re encouraged by the quantity and the quality of the inbound interest. We have engaged as we’re on this parallel path with the interested parties. We have held management meetings Internally, we’ve identified the management team that’s gonna be running these businesses, the presidents of these businesses. We’ve and a a a CFO, a CHRO identified, for to to run that. We have the data room established.

We have also, obviously, as I said, had the management presentations with these groups, and we continue to interact. So we are firmly on a parallel path right now. And as part of that parallel path, we are, at this moment in time, focused on the separation through a sale, but a lot of that work will obviously benefit the separation through a spin as well. Like I said, our North Star will be shareholder value. We we know what our tax basis is.

We’re we appreciate that the spin is a tax free event for our shareholders. But, also, we we see now with the inbound interest, the value that is being ascribed through the interest at least to these assets. And it does reinforce our philosophy that these were good assets in at the outset, and that is reinforced by the level of interest that we’re that that we’re having. So we’re firmly on the parallel path to answer your question where we’re at. We’re we’re engaging, with the with the individuals.

If it’s a separation through a spin, the timeline would be mid twenty twenty six as to when we do that. And, also, through a separation through a sale will be sometime in 2026 as well. To try my luck, on

Patrick, MedTech Team, Morgan Stanley: the interested parties, is is it more of a, like, entirety of the asset or parts that will go to different assets or a mixture, or how is that looking? It’s a mixture, but

Liam Kelly, CEO, Teleflex: the majority of the interest is in all of NewCo. And, obviously, a singular transaction would be easier to execute, but the majority of the interest is is in all of NewCo. And given the level of interest, I think that’s a distinct possibility. Either that or or a separation through a spin would be the possibility. And and I think we have a mixture of financial sponsors and strategics within that.

So, that is also quite encouraging.

Patrick, MedTech Team, Morgan Stanley: Got it. And then how are you thinking if if it were to be a sale, you know, we discussed this a little bit. How do think about use of proceeds?

Liam Kelly, CEO, Teleflex: Absolutely. So if it if it were to be a sale, I’m I’m we’ve we’ve we’ve outlined this also on our on our q two earnings call. We would use the the proceeds to pay down debt and to return capital to shareholders. That would be the two key uses of proceeds, and nothing has changed. That would still be our goal to do that.

Patrick, MedTech Team, Morgan Stanley: Lovely. Maybe pivoting to the the other the other change, obviously, BioTronics Vascular business, which, I guess, is now your vascular business. It is. In that way, you know, very early, I get that. How’s how’s the initial integration going?

You know, how are you finding things?

Liam Kelly, CEO, Teleflex: So it’s ten weeks. It’s going well. We we see the two teams are working very strongly together. We have aligned on manufacturing strategies with the footprints and so on and so forth. We have had several, integrations with the sales and commercial entities.

We have mapped out the process for cross training, on on the different products, and it’s been really strong collaboration between the two teams. It is still running reasonably independently. It’s only ten weeks, and we’re we’re we’re gonna take our time and integrate it thoughtfully and bring it into the business. But, the good thing is ten weeks in, no surprises. I I think that the the business, has the potential to do exactly what we thought it would do in our q two earnings call, So we’re encouraged by by by what we put forward.

And as we outlined on the earnings call, the the business should give us around over $200,000,000 in the second half of the year, 99 in in q three and the remainder in in q four. There is some seasonality involved in that. So, early days, but, very encouraged so far.

Patrick, MedTech Team, Morgan Stanley: You’ve done, in your time, quite a few, deals and integrations, so you’ve got a lot of experience in this area. How are finding, like, the people getting onboarded, you know, attrition rates? Like, how happy are they? You know? What’s that level like?

Liam Kelly, CEO, Teleflex: Yeah. I think, nothing nothing to point to in attrition rates. All of the key leadership team have transferred across to to Teleflex. I think, in general, the team is is, happy to be part of the larger med tech, company, and I think that they see the the possibilities of the combination of the suites of products being part of Teleflex with our interventional business. So I I would say that, the mood in the Biotronic BI business is pretty positive.

I think the mood in the Teleflex camp is pretty positive as they come together. And no surprises in attrition. The individuals that move across, ten weeks later are still very much engaged with us in driving the business forward.

Patrick, MedTech Team, Morgan Stanley: Love it. I mean, you’re mentioning the, the product synergies. How do you think about, like, some of those cross selling opportunities, like, I think, PK Papyrus and then Winger and, like, maybe paint the audience some of the opportunities, in in that, not that specifically, but in the, product synergies?

Liam Kelly, CEO, Teleflex: Well, the the the market that we’re addressing is a $10,000,000,000 market, so the the market possibilities are fairly significant. And there are a number of synergies that we believe, that will that will, bode well for both businesses. There’s there’s geographic synergies and there’s product synergies, and then, there there is also segment synergies that I think and I would look at this very much like the Vascular Solutions business that we bought in 02/2017. As we integrated that business, having a broader portfolio, having broader access to the cath lab really accelerated the growth in both businesses. So if if we start with the product synergies, and you mentioned PK Papyrus and Ringer, in CTOs, perforations happen in approximately three percent of cases, and in PCI, zero point five percent of cases.

And if you have a perforation, it’s it’s obviously an emergency event that needs to be addressed. And our product, the ringer, can be used to actually, address the perforation to allow you to continue the procedure. You now don’t have to withdraw all of the devices that you’re using so you can place the ringer catheter, continue with the procedure as you would have normally. It makes it safe and effective to do that. Then as you exit, you remove the ringer and you you grab the PK papyrus from the BioTronic BI business and you seal up, the the perforation.

So there’s a logical synergy that you can, dominate this segment, this niche within the space that is probably a $120,000,000 market opportunity for the combination products. And then, our complex catheters, which had an excellent q two interventions, it’s slightly better than we anticipated, and the complex catheters drove that. They give you access to to very torturous anatomy, and the the drug eluting stent from Biotronic is one of the most malleable stents to get into those small arteries, in order to to assist. So that combination also helps. And then if you think about it geographically, 50% of the Biotronic business is in EMEA, 25% in the in The Americas, and 25% in Asia Pacific.

Our focus and our business is, strong in The United States. So, the Biotronic BI sales organization will actually help us penetrate our markets, in in Europe, whereas we will help them get access to the cath lab. That was one of the things we we saw with the vascular, the VSI integration, but getting that access to the cath lab when you’re a bigger player, is very, very helpful, and the reps call it wearing the lead, whether actually wearing the lead in in the cath lab as they’re going through the procedures. And then the third synergy that we see, we have products within our portfolio that are indicated for peripheral vascular, but we don’t have a channel. Whereas now as we integrate, the BIOTRONIC BI business, we’ll have a channel for those products.

So all in all, I think there’s there’s synergies on on the Teleflex side, the synergies, on the BIOTRONIC, side, and there’s also synergies from a product and geographic perspective.

Patrick, MedTech Team, Morgan Stanley: Did you clarify that particularly I understand? I mean, how does that work in practice? Are you like, you go to the reps and you say your bag has just expanded massively. Do they, like did it is there, like, a training process where they get explained? You know, how does it work, like, in practice?

Liam Kelly, CEO, Teleflex: So in practice, what normally happens in this scenario is you integrate the two sales organizations over a period of time. You define the training program for the BioTronix salesperson and the and the Teleflex salesperson, so you cross train them on the on the key products they’re going to be selling. That normally takes, two or three months, just to get through that that, that type of a process. And then what you normally do is you would shrink the territories. So they spend more time in their specific call point in their specific and you try and shrink the territories in so far as that the person with the strongest relationship keeps that that that hospital so that you’re able to continue to drive those those revenue synergies through that.

And and then the other thing that you do is you look at it geographically where Teleflex is has a direct presence in almost every country, whereas some of these smaller companies might not be using a distributor. So there’s an opportunity for us to take that business in, and bring it into a direct channel. And we always find as good as the distributor is in some of these geographies, in particular in in Europe, there is the possibility for us to accelerate the growth once we take it over.

Patrick, MedTech Team, Morgan Stanley: So for me as a rep, bigger bag, narrower focus in territory, and I hit my numbers because I’ve got the depth within the accounts that I’ve

Liam Kelly, CEO, Teleflex: Absolutely. And you you you can spend more time on a broader portfolio with a specific customer, and you build that relationship deeper.

Patrick, MedTech Team, Morgan Stanley: Right. And scrubbing up and moving around constantly in different yeah. Okay. Right. That that makes total sense.

Liam Kelly, CEO, Teleflex: They they call it windscreen time. So you’re trying to minimize windscreen time where they’re where they’re actually sitting in the car, but you they’re actually in the cap level rather than driving from account to account.

Patrick, MedTech Team, Morgan Stanley: So hip and knee, I saw a study that said that was about 30% of the rep’s time with point screen time. Fair enough. So it was it very high. Was really interesting. I’d love to, you know, hear a little bit more about FreeSolve.

You know, that’s that’s another asset that was super interesting, pretty unique. Maybe give people a little bit of a background of how bioresorbable scaffolding works and and that sort.

Liam Kelly, CEO, Teleflex: Yeah. So so what Freesolve, is is a product that is, has a CE mark and is currently going through a clinical trial, in Europe and will go through another clinical trial in The United States to get approval. It’s a bioabsorbable, cerolimus coated scaffold made of magnesium. And, if I was gonna use me as an example, but you’re way younger than me, Patrick, so I’ll use you as an example. So, it it gets it gets absorbed into the body after after about twelve months, and it’s being derisked by the first clinical study we did in 14 centers where it was not over 99% absorbed into the body after after twelve months.

There have been previous scaffolds that were made of plastic materials, and they were more difficult to to manipulate and to place correctly. And the other issue with the plastic scaffolds was it took them four years to absorb. So, let’s say you’re a younger person and you have a coronary event. Today, they would put a stent or a number of stents into that person. The likelihood is that that person is going to have more complications in the future.

The issue about having a stent is you can’t put a stent across, top of the stent. So this is a scaffold that actually addresses the issue, but also is absorbed into the body. So after twelve months, it’s it’s a fear. So if there’s another issue that arises later on, you can then go in and do a follow-up procedure and it doesn’t burn any bridges. So that’s and it also addresses a key trend in interventional cardiology and peripheral vascular procedures today leave nothing behind.

So you’re not burning any bridges, and it gives you an opportunity to go in and do further procedures in the future. So we’re excited about it. It gives us nice optionality. The BioMAG two, study, is is in Europe. It’s 2,000 patients.

We’re we’re we’re tracking well in the recruitment of these patients. Once once that is completed, I think that will give us an opportunity to expand that product within within Europe. And we will, kick off the study in The United States in 2026 and start recruiting patients in 2026, in order to get approval for this product in The United States. So that’s our intent, and it does give us nice optionality for a new technology, really focusing on that trend of leave nothing behind within within interventional cardiology procedures.

Patrick, MedTech Team, Morgan Stanley: It’s been a while since we’ve seen innovation, in the stent side of the market, so I think people will pay paying quite a bit of attention.

Liam Kelly, CEO, Teleflex: Yeah. I hope so. I mean, I think that the European clinicians are quite excited about it. We do plan to have, an Investor Day on BioTronic in the autumn and the fall, to explain the assets to to the investment community. And at that stage, I think we will have a a couple of clinicians who will go through the core portfolio and also talk a little bit about presales and explain it, so that people can get a better understanding of what the Biotronic BI assets, and why they why we believe they’re gonna

Patrick, MedTech Team, Morgan Stanley: be meaningful to Teleflex. That’s that’s awesome. I feel like people haven’t looked at DCBs or DESs for a long time in a way, so I think it’ll be pretty useful.

Liam Kelly, CEO, Teleflex: Yeah. And I and I and I think that it it it opens up a a a new market for for for lesions, and it is a unique application, in that regard. So I think once we prove out the the the technology, I think it does represent a nice opportunity in the future.

Patrick, MedTech Team, Morgan Stanley: Pivoting to, RemainCo, like the core business, let’s say, x x Biotronic, you know, how are you thinking about the the growth there? You guys have flagged six to the percent as a growth range. How much of that is just a core cath lab volumes? Like, what are the big puts and takes on the growth of the core business?

Liam Kelly, CEO, Teleflex: Yeah. So the the the remainco, which will be Teleflex, ultimately, we believe, is capable of growing about 6%. The top total addressable market that we’re going to be addressing is in that $30,000,000,000 market, 10,000,000,000 of that is, the Interventional Access portfolio. If you look at that that mid single digit six ish percent growth rate, I think that the the surgical business and the and the vascular business, are capable of growing within that range. And I think to your point, the interventional business simply because, number one, you have a faster growing market.

Number two, we have a lot of innovation coming through. That portfolio, is capable of growing above that that, that average and, therefore, resulting in that 6%, growth rate. And I would say that for RemainCo, if you exclude in this year, 2025, if you exclude the impact of volume based procurement on our surgical business, then RemainCo is growing on those upper 5% in 2025. So I think the portfolio is well capable of doing it. I I think it’s we need to prove it.

That’s gonna be key. In in in 2026, I think it’s important, that we focus on execution, on delivering, good solid top line growth, with, for Remainco with earnings horsepower to boot to go with that.

Patrick, MedTech Team, Morgan Stanley: Maybe diving into some of those, like vascular, and sort of following up. How do think about midterm vascular growth? You know, what what do think is potentially driving the step up in growth in the second half of this year? Love to dig into that.

Liam Kelly, CEO, Teleflex: Yeah. There’s a there’s a couple of things even in the shorter term in this year that that’s going to drive some improvement within vascular. First of all, we we’re going to continue to penetrate the pick market, and you’ll see that, improving in the back half of the year. EZIO had a really tough comp in the first half of the year. So just due to some military orders, and you’ll see that improve in in the back half of the year.

And then we have some timing of some distributor orders, in particular, in EMEA and Asia Pacific, that we should see accelerate in the back half of the year. And then as you go into 2026, obviously, the endurance catheter will return to the market. And in 2027, in our emergency in our emergency medicine group, which will be within, vascular, you will have EZ PLAS, hopefully coming to the market sometime in 2027.

Patrick, MedTech Team, Morgan Stanley: The, on the PICC side of things, I know you guys have had a fair bit of success taking share. Is that still happening?

Liam Kelly, CEO, Teleflex: It is. Yeah. Even even in in q two, it grew double digits. And and, really, it’s because of our coding technology. Hospitals now have to report infections on PICCs in the same way as they have to on central venous catheters, And our coating technology is antithrombogenic as well as being antimicrobial, and that gives that reduces infection rates and act ultimately saves the hospital money because they don’t get reimbursed anymore for infections that are caused within the hospital from from a catheter that is noncoded.

Patrick, MedTech Team, Morgan Stanley: The maybe if we pivot to interventional. You know, there’s a there’s a lot of different moving parts in there. You know, are you thinking about things like on control and then the complex catheters and IVP? How are you thinking about the growth of the division overall?

Liam Kelly, CEO, Teleflex: Yes. So our Interventional business has performed very much in line with our expectations through the first half of the year. I think we continue to take share within the balloon pump market. Obviously, we have a we have a competitor that’s off the market for this period of time. I think if you as you go into the second half of the year, have a tough comp in Q4 because that’s when this this began.

But I am encouraged by the performance, in particular, as we saw in Q2 with our complex catheters and with our OnControl product. They had solid performances in Q2. Now investors need to realize that when you get into Q3, Biotronic will be will emerge into that business, and that will be approximately $99,000,000 in Q three. But all in all, we’re encouraged by the by the performance of our overall interventional portfolio, and it bodes well for the future.

Patrick, MedTech Team, Morgan Stanley: Sergeant Kulk, you mentioned before China VBP sort of disguised a lot of what was going on there. But maybe for a start, putting VBP aside, core business, you know, things like Titan, you know, have been, to our mind, doing really well, comparative in the market. What do think has been driving that?

Liam Kelly, CEO, Teleflex: So I think, you know, the overall bariatric gastric sleeve market is showing modest declines, just due due to GLP ones. But the Titan, you know, the Titan stapler, will will grow double digits this year. So and so, therefore, it’s an opportunity for us to to take share. We’re we’re really supporting that product with robust clinical data. We just had a clinical study that that demonstrated the reduction in GERD.

Prior to that, we had a clinical study, that demonstrated that by using the Titan staplers, the 23 centimeter single stapler line reduces operating time and and has excellent clinical outcomes. So if you’re if you’re able to reduce time in the hospital environment, that that is valuable to the hospital because it can mean that they can get more procedures into that operating room. I also think the product is performing exceptionally well. And even though there are, less bariatric surgeries done today than there were three or four years ago, it is still a very big market. So and therefore, it’s an opportunity for Teleflex to continue to penetrate.

I think also within within the surgical business, I think our core surgical business with the exception of the volume based procurement is performing well. And there are some new products coming in ’26 and ’27. We have the automatic polymer supplier. We have a new clip coming in the future. And and volume based procurement in China will be transitory.

So that should be broadly behind us as we get into 2026.

Patrick, MedTech Team, Morgan Stanley: Not to put you on the spot, but the, how how sustainable are the share gains on the stapling side? Because one of your peers calls out obviously bariatrics, but then to them also robotics, and and but their growth rate is wildly different to yours, basically zero. And there’s a narrative out there that maybe they haven’t invested enough in the assets that they had acquired. And how should we think about their share gains in stapling over time?

Liam Kelly, CEO, Teleflex: So so the Titan stapler can be used in conjunction with the robot, and many of our surgeons do use it in conjunction with the robot. The what surgeons find when you’re doing, the traditional staple lines is you are putting you take the arm out, load, and go in, take the arm out, load, and go in. Whereas if you have one additional trocar and you use the TITAN stapler, you you it’s a single shot, and you do a full line, and therefore, you don’t have crossover of staples. And that’s ultimately why you’ve less GERD because the staple lines don’t cross each other causing that that GERD. So I think that there there’s definitely a trend of increasing robotics in every surgical procedures.

But our focus has been in partnering with those robotics to to enhance the procedure, to drive efficiency, and, again, to save that time. Being able to do a single line of staples in one go saves time, has great clinical outcomes, and, therefore, is an opportunity for us to expand, that market. But the competitor, I have some sympathy for it because the market is not growing like it was a number of years ago.

Patrick, MedTech Team, Morgan Stanley: You should fix our office. None of our staples work. Sorry. We we could use it out. The I mean, China VBP, it’s one of those topics that has been around for so long, and it seems to rotate different categories periodically.

I it’s an impossible thing to ask. But, like, are we are we approaching the end for you guys in terms of, like, which categories? How how much longer of this do we have, do you think?

Liam Kelly, CEO, Teleflex: So of our total portfolio where you have a and you have to have a local competitor in order to have volume based procurement. So of our total portfolio, where there’s an established competitor, we feel we’re through now. All of our portfolio has been through. So I think, for us, it it is, we’ve been through it all. It’s painful.

There’s no getting away from it. It’s painful. You you work to to to get the volumes, and you you lower your pricing in order to get there. But I think the team has executed really well on on the surgical volume based procurement. And, having participated in the tender, having been one of the winners of the tender, I think they’re doing a nice job in gaining the volume that was associated with that tender.

So I’m glad we’re through, though, Patrick. I’m not gonna lie, because, there’s a lot of uncertainty as you go through that. And I think we called it with the with the impact. So and I and I think it, it’s clearly gonna be transitory as we go into 2026. We’ll be at the other side, and I think we’re done.

And and what we’ve seen in the in in in the China market is the the government themselves realized that the initial stages of volume based procurement, they might have gone a little bit too deep, and it impacted not alone the international companies but the local companies. And on the second round of those first few products that went through, they’ve they’ve they’ve actually gone back, and we’ve seen, some price increases. They didn’t involve our products, but that’s what I hear from the market in China. The the the pricing has increased modestly on those price on those products.

Patrick, MedTech Team, Morgan Stanley: Good to hear. There were some categories, not that you were embarthless, which were just obliterated. And Correct. You don’t know how anyone can make any money in there. Yeah.

No. That’s really interesting. Maybe just pivoting a little bit to SpinCo. You know, Baragel was a a highlight and has been a highlight Yeah. For that business.

How how are things going on that side?

Liam Kelly, CEO, Teleflex: Baragil continues to do exceptionally well. And for those who don’t know, Baragil is a spacing technology as men go through radiation therapy for prostate cancer. It creates space and therefore some of the organs, if you don’t have ancillary damage. It continues to grow, really, really well through this year, through the first half of the year, and it has momentum into into the back half. We just got approval in Japan, and there’s obviously reimbursement available there in Japan as well, where we continue to educate, doctors.

And it’s a it’s a two call point. It’s urologist, and it’s also the interventional radiologist that does this. So we’re educating the the urologist that we know and also interventional radiologists on the need for spacing, and we’re continuing to convert that white space. Obviously, there are some competitor gains as you go through as well, but it’s a it’s a big market with a nice opportunity, and we are, we’re we’re expanding the indications for Barajel for post radical prostatectomy because after you’ve had a radical prostatectomy, in about anything from sixteen percent to up to fifty percent of times, the cancer comes back. And this will be a new a unique opportunity for Baragel to to create space, and the competing technology cannot be used, because you can’t there’s nothing to dilate.

So this will expand the market by a $100,000,000, and it will be exclusively accessed by by by the Baragel product.

Patrick, MedTech Team, Morgan Stanley: It’s pretty much still just the two of you, right, in that market?

Liam Kelly, CEO, Teleflex: There there is one other balloon company there. So this which is is a much smaller player. But other than that, yeah, there’s there’s two there’s two main technologies, I would say, in the marketplace.

Patrick, MedTech Team, Morgan Stanley: Yeah. And then two more assets in, Spinker. OEM, how things going?

Liam Kelly, CEO, Teleflex: Yeah. OEM OEM has performed as we thought as we said. We’ve that we said that q one would be the low point. We saw an improvement in Q2, and we expect to see an improvement in the back half of the year. Investors that will be familiar with Teleflex will know that Q3 last year, we announced customer vertical integration as well as an impact of inventory management.

So we will have anniversaried that as we get into Q3, so that that will see an improvement in the OEM business. We’ve seen order rates improve as we’ve gone through the year, which tells us that we’re getting close to the end of the destocking. Obviously, we need to continue to execute, as we go through the the end of the year. And we’ve we’ve a nice nice bolus of of of new business in the pipeline as well for the OEM business. So I feel feel pretty good about the OEM business.

Still, obviously, it’s had a heavy decline in the first half. In the full year, it’s going to be a declining business in in the low double digit range, but notwithstanding that, I I see a good pathway to recovery in in 2026.

Patrick, MedTech Team, Morgan Stanley: And then the BPH market overall and how you feel things are going there?

Liam Kelly, CEO, Teleflex: So on the BPH market, obviously, we have UroLift, which has been majorly impacted by the change in reimbursement four years ago, and this is the final year of that reimbursement change. And the new rule came out just recently, at the proposed rule. So it’s not it’s not it’s not the rule yet. It’s the proposed rule. But it’s very encouraging for Eurolith, especially in the office side of service where we’ve seen significant declines.

It it basically doubles the the profitability of UroLift in that office side of service. And as as investors familiar with Teleflex will know, that’s how what we used to expand the market, when when it was a procedure that was viable in the office side of service. So we’re encouraged by that, assuming that it becomes, the rule rather than the proposed rule, and normally it does. We’ll know in October. And I think that should really help UroLift and allow us then to go back out to those urologists in q four, give them the information about the reimbursement.

There’s many urologists out there that believe in the procedure, believe in the outcomes of the procedure, believe in the clinical data, want to do the procedure in the opposite side of service, but simply because of the profitability of it weren’t in a position to do so. So I think this gives us an opportunity to go back to those doctors, and reengage with them with UroLift and the opposite side of service. So we’re encouraged by that, and we think that at long last, we might begin to see the bottom of of the UroLift decline. Love it.

Patrick, MedTech Team, Morgan Stanley: Maybe just to pivot back to the cath lab because you guys have such a multifaceted exposure to that market. When you’re having a discussion with the customers on that side, how do you how do think capacity is for new procedures? Because at least from our perspective, we see so many different procedures now increasingly moving into the cath lab. How much space is there to keep growing there without, you know

Liam Kelly, CEO, Teleflex: Yeah. So a lot of these procedures that are coming in are actually driving efficiency at the same time. Mhmm. So there’s there’s and we just launched a product last year that is a is a combination. It’s it’s it’s a Watson catheter.

So instead of the clinician having to use two products, which takes time to to to to, insert in the patient, you combine that into one product. So it saves them time, makes them more efficient, makes the cath lab more efficient. And this is why I think, if we look at remainco and the interventional business being the biggest part of remainco, it is a space that is ripe for innovation. Innovation that improves clinical outcomes for patients and innovation that drives efficiency within the cath lab so that you can actually do more procedures within the cath lab. So I think I think the interventional cardiology space is, is an exciting space for many companies, Teleflex being one of them.

And I think our portfolio of products, things like Presolve that that have the potential to to make a a significant difference to clinical outcomes and allow further treatments down the road for for that category of patient and not burn any bridges, I think there’s always capacity in the cath lab to do those types of procedures.

Patrick, MedTech Team, Morgan Stanley: You guys are spinning at the moment a lot of plates simultaneously. If you had to pick one thing that is on your mind the most, from your day to day job in whatever field, like, what’s the one thing that’s the most on your mind day to day?

Liam Kelly, CEO, Teleflex: So right now, it’s the separation because and we are busy. We have a lot of plates. I think and and I talk to my team regularly, and I say, okay. Just remember, you’ve got a lot of balls in the air. Just remember which two are the glass balls.

You don’t drop them. And right now, for me, the glass balls for me are are the separation. Well, I got three, actually. You got the separation. You got executing on your plan for the year, and you’ve got the integration of BioTronic BI business.

And if we do if we do those three well, I think our year would be fine. But but the the organization has demonstrated its enormous capacity to do more, when when asked. And I I think, in particular, our finance group have been incredibly busy because we’ve had to do quality of earnings for for for the separation. We’ve had to do full p and l breakouts. We’ve done management presentations.

We have engaged with the with the other side. So there’s a lot of things that we’ve been doing on the separation, but at the same time, making sure that we integrate BioTronic BI business appropriately and executing q one and q two at the same time. And I think we’ve been able to keep those balls in the air, and I think we’ve been able to keep the glass balls, going as well.

Patrick, MedTech Team, Morgan Stanley: You’re doing better than I’m doing then. Liam, thank you so much, Carlos.

Liam Kelly, CEO, Teleflex: Thanks very much. Cheers. Guys.

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