From X3 Wiki
The Needle is the Kha'ak medium missile, compatible with all Kha'ak ships but usually found on fighters.
This is a missile that will explode near the target ship which can paralyze the target. It has a deadly power against all Fighter ships. Mostly used in Kha'ak Fighters.
The Needle can down a scout and deal serious damage to, if not destroy, most light fighters and interceptors. Should be respected by any pilot flying one of these ships. However, the relatively slow speed of the missile means it is vulnerable to being shot down with a good eye.