For those who are following the advancement in robotic surgery the recent earnings report by Intuitive Surgical (ISRG), the makers of the Da Vinci laporoscopic robot, show strong growth in the use of the technoloy. They reported that profits jumped 65 percent in the first quarter of 2007. Their stock is taking off as a result, jumping over 9 percent on the news. The increase in earnings comes from their focus on increasing the number of procedures per system. Sales of new robotic systems are a large part of their earnings but their unique business model of generating recurring revenues based on the number of operations performed looks to be a long term growth driver. It is the old “razor/razorblade” model because the robotic systems use instruments that are disposed after each operation. The annualized number of procedures per system increased to 133 in the first quarter versus 119 in 4Q06.

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This entry was posted on Saturday, April 21st, 2007 at 11:30 am and is filed under Surgery. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.