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  "documentTitle": "UFP Technologies, Inc. (UFPT)",
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  "notes": "Includes a satellite map showing the proximity of competitor factories in the Dominican Republic.",
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      "text": "We think ISRG’s decision to move drape purchases away from UFPT forces the company into negative sales growth.",
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      "text": "Satellite map showing 350-meter distance between Microtek and other facilities in the Dominican Republic.",
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      "text": "Microtek previously supplied ISRG with surgical drapes before a 2015 recall damaged the relationship, but evidence indicates Microtek's new private equity owners are determined to recapture this business.",
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      "text": "During Q1, we spoke with ISRG's IR team about the company's plan to improve their gross margins. They volunteered, without prompting, that they had already moved ~10% of surgical drape production in-house to Mexico and intend to ramp more production there.",
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      "text": "We think ISRG's decision to move drape purchases away from UFPT forces the company into negative sales growth. ISRG was responsible for 96.5% of UFPT's organic sales growth in 2024.",
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      "text": "UFPT's management went on a nine-figure debt fueled acquisition spree last summer, snapping up four med-tech companies. The largest acquisition by far, AJR, only has one customer, Stryker.",
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      "text": "Import records we reviewed for UFPT's surgical drape facility show a 38% decline in shipment volume by weight from Q2 2024 through Q1 2025.",
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      "text": "UFPT recently promoted a new exclusive contract secured between AJR and its sole customer, Stryker. The Street claims AJR will only earn $80 million in revenue after the move to the DR, down from the $111 million run-rate AJR posted in Q3 2024.",
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