19 June 2019

INTUITIVE SURGICAL

Intuitive Surgical is a company which develops and manufactures surgical robots, and is the global leader

by Michael Bray

Research Analyst

Group 10Created with Sketch.
Price
$464.85
Group 11Created with Sketch.
52 Week High-Low
$589.32—$430.24
Page 1Created with Sketch.
Net Yield
N/A
Group 12Created with Sketch.
Hist / Pros Per
49.2-41.4
Page 1Created with Sketch.
Equity Market Cap
$55,999

Intuitive Surgical is a company which develops and manufactures surgical robots, and is the global leader. These however aren’t the fully automated robots that you may be thinking of.

Intuitive’s robotic system – the da Vinci Surgical System - provides assistance to surgeons during surgery, but doesn’t completely replace them. Robotic-assisted surgery helps to make surgical procedures more precise and less invasive. Complex procedures such as heart valve and cancer surgery can be made through 1 cm to 2 cm incisions. This leads to better patient outcomes and lower overall healthcare costs.

In 2018, da Vinci Systems assisted with over one million surgeries. The company estimates there are five million applicable surgeries related to gynaecologic, urologic, cardiothoracic and head/ neck operations which their system could be used for, and that’s just in existing countries where it sells products.

With such an attractive market opportunity, price competition from new competitors is likely to increase. How hospitals weigh the value proposition of Intuitive’s proven technology vs lower priced competing solutions remains to be seen.


Also in this issue

Often in the news for the wrong reasons, Facebook is not a company which many would call a success. But from a financial perspective the business has performed incredibly well since its stock market…

Businesses that benefit from the network effect are said to see the value of their product or service increase with the number of users. This may sound simple, but it is actually quite uncommon and is…

Barclays Bank has been in the news recently, but not quite for all the right reasons. An American shareholder activist called Ed Bramson has been pushing for the bank to restructure its investment…

Summer Issue Twenty Seven