Teleflex Incorporated (TFX) Earnings Call Transcript & Summary

All right. Good morning, everyone. Thanks for joining us here today. I'm Lili Lozada. I'm part of the med tech team here at JPMorgan, and I'm happy to have Teleflex CEO and CFO. Liam Kelly and Tom Powell with me here today. Just a reminder before we jump in. You all can follow along the slides posted on the JPMorgan Healthcare Conference website. And feel free to submit questions throughout the presentation that I can pass along during the Q&A. So with that, I'll pass it over to you, guys.

Lili, thank you very much, and good morning, everyone. And thank you for joining me today. As Lili said, my name is Liam Kelly, and I am the President and CEO of Teleflex. We are pleased to be attending this conference again, and we appreciate your interest in Teleflex. For those of you following on the slides, I'll try and give you the slide numbers as I go through the presentation. So moving to Slide 2. Before I begin the presentation, I'd like to remind you that some of the matters discussed today will contain forward-looking statements regarding future events. I wish to caution you that such statements are in fact forward-looking in nature and are subject to risks and uncertainties and that actual events or results may differ materially. Now moving to Slide 3. Our core values and our entrepreneurial spirit, building trust and making it fun with people at the center of everything we do. Facing a global pandemic, our more than 14,000 employees came together while exemplifying our core values, and I'm extremely proud of how our global team has executed in making a difference to clinicians on the frontline. To Slide 4. At Teleflex, we unite trusted talent, brands, products and technologies. We operate in the field of vascular access, anesthesia, interventional cardiology, urology, respiratory and specialty surgery. In 2019, we generated nearly $2.6 billion in revenue. And across our portfolio, we have leading market positions with established global brands. To Slide 5. Our mission at Teleflex is to improve the health and quality of people's lives. We estimate that every day our products in -- are used in over 31,000 surgical procedures in the United States to help more than 1,600 patients who require vascular access intervention, to care for more than 6,000 patients in the intensive care unit and by 3,200 emergency responders to treat patients in the field. Slide 6. I think now it is no secret that demographics are going to play an important role in the future demand of health care. And one of the things we think is unique about Teleflex is how well we have purposefully aligned our product portfolio to these favorable demographic trends. Let me provide you with a few examples that illustrate why we believe Teleflex will benefit from changes in the health care landscape. There are 10,000 Americans every day crossing over the 65-year-age mark. Most spend about 10% of their total health care expenditure between the age of 50 and 65. However, between the age of 65 and 85, they spend 60% of the total. And our view is that future demand for increased health care is inevitable. What we've tried to do as a company is to diversify our portfolio across what we classify as non-postponable procedures, where it is very difficult to cancel the delivery of care and the use of our products without having a very adverse event for the patient. This has been evidenced during the global pandemic, as we estimate that about 1/3 of our portfolio benefited from increased demand, while another 1/3 of our portfolio was not impacted at all by COVID. Turning to Asia, one of our fastest-growing geographies. There will be over 1 billion people over the age of 50 by the time we reach 2025. The middle class in China is also growing rapidly, and they are demanding better health care. While another important trend we are seeing is the shift to lower acuity patients out of the hospital and into lower-cost sites of service such as the ASC. This benefits Teleflex in 2 ways. First, the hospital is left with a higher acuity and higher-cost mix of patients, putting more pressure on hospital systems to reduce cost and take actions that shorten the length of stay and reduce hospital-acquired infections. This most obviously benefits our coded [ capital ] products. Second, the products that lower-cost sites of service utilized are generally the same products used in the hospital, allowing Teleflex to participate in this shift to lower-cost sites of care. On to Slide 7. So why are we so excited about the opportunities that lie ahead of Teleflex? Well, first, we enjoy leadership positions in growing markets such as vascular and interventional access as well as interventional urology. And we're also have a strong presence in the Asia-Pacific region. These leadership positions are built on established and well-respected brands that stand for quality and innovation. And our customers trust and respect the clinical value of our products. Next, we are of a unique size, which we believe is an advantage. Because we have global scale, we're relevant to every GPO and IDN within the United States. We can apply for tenders within Europe, and we are relevant to Asian markets with an infrastructure and a footprint in each of these areas. We are also small enough to be nimble and make quick but informed business decisions. For example, we've completed several acquisitions over the years that moved the needle for Teleflex, which may not have had the same impact for other companies. We have a track record of execution, delivering a combination of constant currency revenue growth with growth in operating margin expansion that has resulted in an adjusted earnings per share 5-year CAGR of approximately 14.2%, and we have been and will continue to deploy capital for M&A as we believe it is a prudent use of cash to drive shareholder value. We have now completed more than 65 transactions since 2011, most of which have added scale, revenue growth and margin expansion. We think that our ability to source, research and integrate acquisitions is a core competency of Teleflex, demonstrated by a strong track record of execution. And lastly, while executing well during a challenging 2020 period, we believe that we are poised to benefit from a strong recovery in 2021. We expect a stronger mix of higher-growth, higher-margin products to sustain our constant currency revenue growth and further margin expansion. Slide 8. Now on this slide, there's a look at our reportable segments in 2019. Combined, these segments reported revenues of approximately $2.6 billion, which was an increase of 8.1% on a constant currency basis over the prior year period. During 2019, our constant currency revenue growth was broad-based, almost quite strong across several geographies. In 2020, we estimate that our underlying portfolio growth have been similarly robust in the 8% range on a year-to-date basis through September, excluding the impact of COVID-19. Slide 9. Next, let me dive a bit deeper into some of the drivers of our 2019 performance from a global product category perspective. Like our geographic performance, our revenue growth from a product line standpoint was broad-based, driven primarily by strength in Interventional Access, OEM and Interventional Urology as UroLift continued to become rapidly adopted by urologists. Importantly, in 2020, on a year-to-date basis, we estimate underlying growth for UroLift in the 40% range ex-COVID and see continued momentum building as leading indicators such as new urologists trained and direct consumer leads are trending as we expected. Moving to Slide 10. When you look at our total revenue trend over a multiyear period, you can see we have delivered relatively constant revenue growth over the long term since 2011, the first year we operated as a pure-play medical device company. When you look at our annual organic constant currency revenue growth from 2015 through 2017, we averaged approximately 4%. While during 2018, that accelerated to 5% and then jumped to approximately 8% in 2019. Year-to-date through September 2020, we estimate that our business has grown approximately 8% on an underlying constant currency basis. Slide 11. In addition to increasing our revenue growth profile, our ability to consistently and meaningfully drive both growth and operating margin expansion continues to be a differentiator for Teleflex as compared to many of our peers. To date, we achieved this expansion through non-revenue-dependent sources such as restructuring initiatives and by adding higher-margin products to our portfolio through either scale acquisitions, distributor convergence or internally developed products. Like our thoughts on revenue, during the 2019 through 2021 time period prior to COVID, we anticipated that we would be able to expand our adjusted gross and operating margins, reaching between 60% and 61%, and 30% and 31%, respectively, by 2021. While the timing has shifted due to the pandemic, we still believe that these are the right financial targets, and we have strong conviction in our ability to meet them. Slide 12. Our ability to be successful in the future is predicated on 5 strategic building blocks: first, driving revenue growth by addressing major health care challenges such as through infection prevention, improving outcomes with less-invasive evidence-based products that lower the cost of care and augmenting the internally developed growth with strategic M&A; second, delivering non-revenue-dependent margin expansion. We believe we can drive margins higher through the execution of previously announced restructuring initiatives, taking certain portions of our business that today utilize a third-party distributor to a direct sales model as well as leveraging our global infrastructure. Third, capital deployment for M&A. To date, most transactions we have completed have added shareholder value, and we look to drive continuous improvement as the learning from each transactions build upon it; fourth, the strategic initiative concerning demographics. We have built a global product portfolio designed to meet the needs of procedures that cannot be postponed as the global population ages. And last, and by no means least, is our people. We continue to work hard to make Teleflex a great place to work, offering people career-building opportunities and striving to maintain our core values and culture. Now on to Slide 13. Let me dive a little deeper into the first strategic building block of driving accelerated revenue growth. Our objective is to further transform Teleflex from a medium-growth company with gross and operating margin expansion to a high-growth company with gross and operating margin expansion. Our focus is to selectively invest in key disease states and markets, continue the cadence of new product launches, focus our sales and marketing efforts on driving utilization of high-margin products, leverage our global infrastructure for incremental margin expansion and execute M&A as a growth accelerator. Slide 14. We have often said that all revenue growth is not created equal, and our preference is to invest more heavily where we see the highest-potential returns on capital. As we look across our portfolio, we see certain disease states and target markets that ranked highest in our evaluation for potential investment. In some of these market segments, such as catheter complications and emergency medicine, we already have a significant leadership position, and the objective is to drive deeper utilization. Another, such as interventional cardiology, offer the opportunity to grow our market share significantly. While the interventional urology and men's health category is a going to be unique situation, in that while we have a leadership position in the market for minimally invasive treatment of benign prostatic hyperplasia, the global market is massive, and we have only scratched the surface. Slide 15. We have also implemented initiatives to drive utilization of existing products. Where in most cases we have captured only a small share of our customers' total procedures in that area. The products on the upper hand of this slide represent products we are currently selling while the products on the bottom half of the slide are either still in development or have not yet launched on a full-scale basis. I want to highlight just a few. Starting with Interventional Urology. The UroLift system is addressing a market of over 12 million men in the U.S. and nearly 100 million worldwide who are apparently seeing a physician for BPH. With more than 200,000 UroLift procedures completed, we have only scratched the surface of penetrating this large market opportunity. UroLift is a 1-hour procedure that provides rapid relief, 0 incidence of new sustained sexual dysfunction, lower risk of needing a catheter in a procedure that can be done in a doctor's office. Given the UroLift's unmatched patient experience, excellent clinical data, established reimbursement and focused commercial strategy, we expect it to make strong contributions to our revenue growth rate for the next several years. Turning to intraosseous access. The EZ-IO device is a tool that enables clinicians to establish vascular access quickly in trauma or critical care situations, while the OnControl Powered Bone Access System has revolutionized bone marrow and bone lesion biopsy. We think there is a significant opportunity to increase the utilization for each of these products in the future. I would also note that we acquired these technologies via the Vidacare acquisition in 2013 and have more than doubled the $16 million in revenue base since then. In Vascular Access, our PICCs and catheter navigation systems continue to benefit from hospitals focused on reducing catheter-related bloodstream infections. And we continue to have the only antimicrobial and anti-thrombogenic catheter PICC on the market today. Key interventional cardiology products include Turnpike and TrapLiner. These products continue to facilitate physicians' access to tortuous anatomies, enabling them to perform interventional procedures that in many cases prevent a more open surgical procedure. Through the acquisition of Essential Medical in October 2018, we obtained the MANTA vascular closure device. MANTA is the first and only FDA-approved device specifically designed for large-bore closure. MANTA has excellent clinical data demonstrating rapid hemostasis and the reduction of complications as compared to suture-mediated and surgical closure. Our initial target market for MANTA will be TAVR and EVAR procedures. And we estimate the global addressable market for MANTA based on these 2 procedures to be between $200 million and $300 million. Moving to the bottom half of the slide. We have a pipeline of products we feel will further augment our long-term constant currency revenue growth objectives. EZPlaz our freeze-dried plasma product currently on a fast track BLA regulatory pathway. This is another highly innovative product in our new product pipeline that we are extremely excited about. We believe it addresses the issue with availability and waste in the market today by providing a plasma solution that does not need to be thawed and can be quickly reconstituted within minutes in a trauma situation. UroLift 2 offers a catheter-based system for physicians that reduces shelf space and waste, further simplifies the procedure and increases gross margins in our Interventional Urology business unit. We recently completed our market assessment test with excellent results and are now entering a controlled [ lot ]. We plan to continue to roll out UL 2 during 2021, and we want to ensure that we do not disrupt the recovery for UroLift and we remain confident that we will drive approximately 400 basis points of gross margin expansion for UroLift as the base is fully converted. We will also be launching a new product within our ligation clip portfolio. The Weck Auto Endo10, an automatic delivery device for the large Hem-o-lok clip. Investors familiar with Teleflex will recall that this is a $100 billion global portfolio for us and has a highly significant higher gross margin than the corporate average. We are the market leader in the manual polymer ligation clips, which are used globally in key robotic procedures. When launched, this product will open up a significant market opportunity for us within the automatic polymer ligation space. And lastly, in Interventional Access, we have the Wattson pacing guidewire launching over the next year. It is a 2-in-1 device acting as both a standard TAVR guidewire and a temporary pacing wire. The Wattson eliminates the need for the -- a right arm access site and thus simplify and shortens the TAVR procedure. Slide 16. We firmly believe leveraging our global infrastructure is one of the core competencies of Teleflex, especially as it relates to our M&A expense. There are several opportunities to enter new markets with existing high-margin products. We also see opportunities across other business units to collaborate for introductions of new and existing products into new geographies. Dealer-to-direct conversions has been a significant driver of value over the past several years as the ability to gain better control of the commercial channel has obvious long-term benefits. And while not every market is a fit for a dealer-to-direct conversion, we believe there is incremental dry powder to take businesses direct in countries outside of North America. Lastly, I would be remiss if I did not mention a series of non-revenue-dependent restructuring activities we are engaged in that will drive annualized synergies through 2024. In total, the savings are $85 million to $98 million. About 25% of those were realized by the end of 2019. And then we expect to realize a fairly significant amount in '20 and '21 and less significant amount in '22 and then another substantial amount in 2023. Now Slide 17 and turning to M&A. We will continue to deploy capital for M&A as the preferred use of cash. I've had an M&A focus across 4 categories. The first are scale acquisitions. Each of the scale acquisitions completed to date have very similar characteristics. They had market leadership positions, presented obvious clinical benefits, lowered the overall cost of care, had strong IP, afforded us the ability to leverage our sales force and allowed us to take these technologies to new geographies and leverage our pre-existing infrastructure. Our target for scale acquisitions continues to be in that $50 million to $200 million in annual revenue. We think that our size is a unique advantage. It allows us to move quickly on these transactions and closed -- closing them moves the needle for us. Dealers are direct opportunities also remain in focus. And often, when we complete a scale acquisition, that refills the bucket with new opportunities to go direct overseas. Late-stage technology acquisitions also continue to interest us if they fit our strict criteria and augment our organic innovation pipeline. And lastly, sometimes we are opportunistically, buyer-supplier and reverse integrate them. Now on to Slide 18. We believe that we are best in class with sourcing, researching and integrating acquisitions. And our track record speaks for itself. Our last 4 scale acquisitions positively impacted our financial profile and created significant shareholder value, and we believe our most recently closed transaction, Z-Medica, will also prove to be a successful acquisition. LMA, which we acquired in 2012 is a global market leader in laryngeal mask with a portfolio of innovative products. By purchasing Vidacare in 2013, we acquired the leading provider of intraosseous, or inside-the-bone access devices. This transaction continues to contribute to our revenue growth and gross margin expansion. Vascular Solutions, acquired in early 2017, provides a broad range of products in the interventional cardiology and interventional radiology space with strong clinical benefits and IP protection. And NeoTract, acquired late in 2017, provided us an extremely high-growth actions with an innovative technology that is creating a new category of minimally invasive treatment for benign prostatic hyperplasia. We anticipate each of these acquisitions will continue to make positive contributions for our revenue growth, adjusted gross and operating margin expansion over the next several years. Now on Slide 19, I want to focus a little bit on Z-Medica. We recently closed the transaction at the end of December. The timing was as we expected and anticipated. Z-Medica's hemostatic technology are helping reinvent hemorrhagic control with cost-effective, efficient bleeding control solutions being adopted by markets worldwide. The company offers 3 main brands: QuikClot, Combat Gauze and QuikClot Control+, which utilize the proprietary technology consisting of gauze impregnated with kaolin. The technology actives and accelerates the body's natural clotting ability. Teleflex' strategy is to invest in innovative products and technologies that can meaningfully enhance clinical efficacy, patient safety and comfort, reduce complications and lower the overall cost of care. The acquisition of Z-Medica enables Teleflex to leverage our strength in the hospital, EMS and ambulatory call points with differentiated products that complement our EZ-IO and easy class product portfolio. From a financial perspective, we expect to drive high single-digit revenue growth from an asset that generates growth in operating margins in excess of the corporate average. And finally, on Slide 20. In closing, we believe Teleflex is a rare and differentiated asset in the medical device space, with an accelerating revenue growth profile, incremental non-revenue-dependent margin expansion opportunities strong free cash flow and robust adjusted earnings per share growth. We believe our diversified product portfolio positioned against the backdrop of strong demographic trends and being led by an experienced management team will help us achieve our goal of further transforming Teleflex from a medium-growth company with gross and operating margin expansion to a high-growth company with gross and operating margin expansion. Thank you very much for your time and attention today, and we truly appreciate it. That completes my prepared remarks. And now I'll turn the call back to Lili for some Q&A. Thank you.

All right. Great. Maybe before we dive into the business, let's get the COVID conversation out of the way. So could you just give us a general update on the trends you've been seeing over the course of the last few months? And in particular, how would you compare hospitals' willingness or ability to perform procedures and patients' willingness to undergo them today versus what we saw during the height of the pandemic last spring?

Yes. Thank you, Lili. I mean I think what we're seeing out there is no different to what every other company is seeing. We anticipated that Q4 would be fairly similar to Q3, but with a worsening situation with the pandemic. Obviously, we've got 24 million, roughly, cases globally today. And 100,000 of those would be deemed to be critical. So our 0.5%. Now if you go back to the beginning of the pandemic, Lili, we would all have seen that the critical number of cases were approximately 4%. So what does that tell us about what's happening out there in the market today? Well, what that tells me is that we are increasing our -- in our ability to treat COVID patients. I've spoken to the CEOs of multiple hospital systems, and the way we treat patients now is very different to how we treated patients in the first wave of pandemic. We're not intubating them nearly as quickly so that they get into an intensive care unit and it's very difficult to move them forward. We're treating them with a cocktail of pharma and trying our best not to intubate them. What is different in this surge is that we have not seen any state-mandated shutdowns, and that's a real positive. I think that the states are allowing the local institutions and hospitals to decide how they're going to proportion those COVID patients to certain areas within the hospital in order to keep -- allow elective procedures to continue. Now there's no doubt that we have seen hospital capacity stretched, especially the intensive care units, given the post-holiday surge, where we're getting, in the United States, over 200,000 cases per day. But having said that, we're also seeing our hospitals being able to conduct elective procedures. Now as it relates to Teleflex specifically, we had anticipated this second surge when we gave our Q3 guidance. Our business declined by 4% in the third quarter, and we told investors to anticipate a modest improvement from that minus 4%. And so -- and in October, our business was modestly growing in the aggregate for Teleflex. So clearly, we have baked in that downward trend in November and December in Teleflex. And what we would anticipate happening is we would anticipate increased demand for our respiratory and vascular products, and we would anticipate some pressure on procedures. But notwithstanding that, we think that we significantly derisked the fourth quarter for investors with our direction on our third quarter call.

Okay. Great. And how would you say this compares geographically both within the U.S. across different regions and internationally as well, particularly considering -- while we haven't seen as many widespread lockdowns in states across the U.S., there have been some countries that entered into more restrictive lockdowns in recent months internationally?

There have. And we have seen the upswing in cases in some of these geographies, in particular, in Europe. I mean if you look at Europe, the U.K. has gone up to 50,000 cases per day. France, Germany, Italy back up to 20,000. I mean, I think in some parts of Europe, it's almost higher than it was during the pandemic. But again, in Europe, they're treating the patients better. We have seen some pockets -- even in the U.S., we've seen some pockets of restrictions and cases. And in Europe, we're seeing some pockets. But I would tell the investment community, it's not anything like the first wave where we saw an almost ban on elective procedures. And I think we should take those positives that health care systems are now prepared for the COVID situation for -- so the response is much better than it was in wave 1. Similar in APAC, we've seen some increase in cases in places like Japan, where they are on their second, if not their third wave. But they're managing it pretty well. And I think Australia have gone through their second wave and are also managing it very well and allowing elective procedures to go ahead. I think from the Asian markets, the market that strikes me that has managed COVID better than any other markets, to me, at least, has been Korea. South Korea has done an exemplary job in managing the whole COVID situation, allowing society to conduct itself in a more normalized level and also keep procedure flow through the hospitals. Because really, Lili, what we want to consider is that you want to look at procedures, not in really in the area of postponable procedures, but deferrable. And how long are they deferrable for without having a very adverse event for that patient? You can only defer certain procedures for so long. So if a patient needs a TAVR procedure, they're going to have a very negative outcome in the future if we don't do that in the near term. So I think hospitals are keeping the patients in mind. I think companies are keeping the patient in mind and trying to ensure that patients get the care that they originally need and deserve.

Can you give us an update on where you think you stand on the backlog? How much of this do you think has been worked through? How long do you think it will take to get through the balance of this? And do you think you've actually added onto this backlog over the course of the last few months just as trends have deteriorated?

So for sure, one would anticipate that there is a backlog. It's very dependent to when we're going to see it. It [ has ] some multi factors. So it really just depends as to when we see the recovery out here outside of COVID. Will it be in early 2021? Will it be halfway through 2021? Then the other aspect is, will hospitals have the capacity to add on additional days in the operating room, days to do procedures and will they also continue to push procedures out to the ASC and the office where there is capacity? And I think the latter will definitely occur. And I think that could be a longer-term impact of what's happening within med tech to date. So we would consider that there has to be a bolus there that will get worked through, and it will probably take through 2021 and into 2022. But it's very hard for us to estimate whether there's going to be a bolus catch-up or not. We'd probably be one of the companies that would be more conservative and not building that bolus of cash up and added capacity. We were one of the firms that began to highlight that the recovery that everyone was expecting in Q4 and the additional capacity in Q4. We were one of the first firms to identify that, that was not going to occur because we realized that hospitals were having enough difficulty getting their current flow of patients through the hospital system with the restrictions of social distancing and so on and so forth. So I think that we will take a wait and see for that bolus. And if it does occur, obviously, that would be a significant advantage for some of our business units, in particular, the UroLift and Interventional Urology, interventional access, surgical, anesthesia and OEM.

So as you've just stated, there's, of course, still a ton of uncertainty ahead of us. And I appreciate how challenging it is to forecast out the next several months. But what would you say are the key building blocks for revenue and margin assumptions in 2021? And what key puts and takes, both on the top line and down the P&L should investors be keeping in mind as they build out their models for the year?

Yes. So we're not one of the companies that preannounces. And obviously, we're not one of the companies that has guidance out there. But I -- for sure, what you want to have as a CEO of a public company, and especially a company that has aspirations for growth, but you want the levers -- our levers, whichever way you want to pronounce it, you want to make sure that you have enough dry powder as you head into a multiyear plan in order to augment your growth. And as I said here today, of course, the big wildcard is the COVID recovery. So let's park that to one side. But I think we have a number of levers that we are in a position to pull. So you've got UroLift. That's been a huge growth driver. Ex-COVID, through the first 9 months, it's been growing at around 40%. You've got MANTA. We just acquired Z-Medica. We're continuing take share in PICCs. We've got the EZ-IO and OnControl in the Vidacare portfolio. APAC should recover as quickly as the United States as we go into 2021. Our interventional access portfolio, Turnpike, GuideLiner, TrapLiner. And of course, EZPlaz, coming to support Z-Medica, assuming that we get that BLA submission done in the near term, that might even add something in 2021. If we look at our long-term objectives of growing 6% to 7%, and we would take that up to 2019 base, assuming COVID recovered early in 2021, and by early '21, I mean, Q1 2021, then that would be the way we would look at the world. And then, of course, with the acquisition of Z-Medica that we could add on to that portfolio. I think, from an investor standpoint, I should point out that there are some nuances next year. So the 2 less billing days in the first quarter of the year, and we'll pick that billing day out back up in the fourth quarter. So we pick up 1 in the fourth quarter. So I should point that out to investors. There is a slight billing day impact for Teleflex in 2021. But we feel good, quite frankly, as we head into 2021. We feel that COVID is being managed much better in the second wave, as I said earlier, and we feel that our portfolio is well set up to bounce back out the other side of COVID. And of course, in Q2, we will have one of the weaker comparables than every med-tech company will. So I think it's a good time for med tech in 2021, and I think it should be a good year for the industry in general.

Great. In the last few minutes we have here, I have a question from the audience. Could you touch on EZPlaz and the timing of the BLA submission and launch timing?

Yes. As I said, we're on a fast track BLA submission with the FDA. We would be very hopeful that by the time we get to the February time frame, we'll be able to give investors very specific time lines for the BLA submission. So if that investor would bear with me for another few weeks, that would be incredible. There is an opportunity that if we move relatively quickly through the approval process, we may be able to generate a small amount of revenue in Q4. There -- that is a potential. And what I really like about the EZPlaz is that, obviously, we've got the EZ-IO into that call point -- our laryngeal mask though into that call point. Now we've got Z-Medica building out that emergency medicine, trauma, military call point. And then coming down the pipe to support all of that, we've got EZPlaz. So we're really surrounding a call point with incredibly good products with very strong IP and with a great value proposition for the users. So -- and thanks for the question. And hopefully, on the back end of February, we'll be able to give real specific time lines.

Okay. Maybe one last question here before we wrap things up. Now you stated that your goal is to make Teleflex the fastest-growing diversified company. Are you willing to share any details on what that means for Teleflex in terms of numbers?

So I think what I was trying to illustrate there is how positive we feel about the company. We have a diversified portfolio. And if you look at 2019, as I stated in my prepared remarks, we grew at approximately 8%. We have a long-range goal to grow 6% to 7%. We continue to augment that with strategic M&A to put us in a position to be one of the fastest-growth med-tech companies on the planet. And that's an aspiration. That's what we want to become. And I think we have the ability to do that with a couple of good internal developments, continue to execute on the growth profiles that we have, execute and integrate Z-Medica into our portfolio. And then add a couple of go directs and late-stage technologies and scale acquisitions, and that definitely gives us the opportunity to be one of the, if not the, fastest-growing diversified med-tech companies on the planet.

Okay. Great. I mean, it looks like we're at the top of the hour here. So I really appreciate you joining us today, and thank you to all the investors on the line for tuning in.

Thank you very much. Thank you, and thanks, everyone, for their interest.

Bye.