07.20.23
Rank: #19 (Last year: #21)
$6.22 Billion
Prior Fiscal: $5.71 Billion
Percentage Change: +9.0%
R&D Expenditure: $879M
Best FY22 Quarter: Q4 $1.66B
Latest Quarter: Q1 $1.70B
No. of Employees: 12,120
Global Headquarters: Sunnyvale, Calif.
KEY EXECUTIVES:
Gary S. Guthart, Ph.D., CEO and Member of the Board of Directors
Dave Rosa, President
Jamie Samath, CFO
Chris Carlson, Ph.D., Sr. VP and GM, Multiport
Iman Jeddi, Ph.D., Sr. VP and GM, Single Port Platform
Charlie Dean, Sr. VP and GM, Endoluminal
More and more medical device manufacturers are adding robotic surgical systems to their portfolios, indicated for an array of surgical procedures from gastrointestinal to orthopedic. Seemingly just as common, however, are firms experiencing delays, development challenges, lawsuits, and other obstacles to achieving success in the space.
Then there’s Intuitive Surgical.
Intuitive essentially gave birth to the robotic surgical scene more than two decades ago and has been improving the technology, adding procedures, and gaining market share the entire time. Meanwhile, larger organizations with more financial resources pale in comparison in terms of progress.
“We see decades of opportunity in developing and deploying technology-enabled ecosystems to address acute care and we are in a strong position. We focus on what we can control and deal with reality as it is, not as we hope it could be,” Intuitive CEO Gary Guthart, Ph.D., stated in his letter to shareholders in the firm’s annual report.
ANALYST INSIGHTS: While its key upcoming larger (MDT and Ethicon) competitors continue their delays in launching their robotic solutions, Intuitive Surgical simply keeps humming along, taking advantage of its market leadership in a growing category. Intuitive is executing on all cylinders as it maximizes revenue from its current footprint (install base) while bringing out innovative new robotic solutions to expand procedural applicability for its solutions. The question is, “When will MDT or Ethicon get tired of chasing them and simply buy them?” Wild Card—Stryker could make a play some day. Let’s see what happens!
Through the end of its latest fiscal year, Intuitive has achieved some significant milestones. Approximately 1.875 million procedures were performed with its da Vinci system, which bested 2021’s total by 18%. The installed base for the system increased by 12% (7,544). Meanwhile, procedures using the Ion system totaled 23,500, which reflected an astounding 218% growth. The installed base for this product rose 149% to reach 321 systems.
The financial picture is also a positive tale overall. The company ballooned 9% in FY22, which translated to $6.22 billion. Within the Product segment, which tallied $5.2 billion and accounted for 84% of Intuitive’s total revenue, resides Instruments and Accessories and Systems. The former inflated 13% for a $3.52 billion total, while the latter dipped by 1% to finish with $1.68 billion. The other main unit for Intuitive, Service, grew by almost 12% to post $1.02 billion.
In addition to gaining more ground on competitors through increased sales and system placements, Intuitive also puts forth effort into training surgeons on how to use these advanced technologies. In fact, the organization was recognized for its initiative to do so by the Royal College of Surgeons of England, the largest robotic-assisted surgery provider to achieve the honor.
In a different area of the globe, the company made headlines for gaining clearance from Japan’s Ministry of Health, Labour and Welfare for its da Vinci SP surgical system. The agency’s OK permitted the system to be used in general surgeries, thoracic surgeries (excluding cardiac procedures and intercostal approaches), urologic surgeries, gynecological surgeries, and trans-oral head and neck surgeries. The da Vinci SP system provides surgeons with robotic-assisted technology designed for deep and narrow access to tissue in the body. The ability to enter the body through a single, small incision helps enable a minimally invasive experience for complex procedures.
Although many leading firms do stand to become competitors to Intuitive through their own robotic surgical development efforts, others present opportunities for partnerships that aid both organizations and, of course, the patients they ultimately serve. One such arrangement was made in the middle of the 2022 fiscal year between Intuitive and Siemens Healthineers. The FDA granted clearance for the latter’s mobile cone-beam CT imaging technology to be used in conjunction with the Ion Endoluminal System, used for robotic-assisted bronchoscopy. Siemens’ Cios Spin mobile imaging offers integrated functionality with Ion to provide 2D and 3D imaging during procedures to help physicians gain confidence around refining Ion’s catheter positioning and help improve biopsy tool placement.
Unfortunately, not all of the news was positive for Intuitive. A Reuters article revealed a patent dispute had been revived. J&J’s Auris Health unit’s patent challenge was given life by a U.S. Court of Appeals decision. It ordered the U.S. Patent and Trademark Office’s patent tribunal to revisit an earlier decision it made regarding a 2012 patent Intuitive holds. Auris is seeking to invalidate Intuitive’s patent, citing the earlier decision relied on “general industry skepticism” of robotic surgery. A final decision regarding the issue has yet to be made public.
$6.22 Billion
Prior Fiscal: $5.71 Billion
Percentage Change: +9.0%
R&D Expenditure: $879M
Best FY22 Quarter: Q4 $1.66B
Latest Quarter: Q1 $1.70B
No. of Employees: 12,120
Global Headquarters: Sunnyvale, Calif.
KEY EXECUTIVES:
Gary S. Guthart, Ph.D., CEO and Member of the Board of Directors
Dave Rosa, President
Jamie Samath, CFO
Chris Carlson, Ph.D., Sr. VP and GM, Multiport
Iman Jeddi, Ph.D., Sr. VP and GM, Single Port Platform
Charlie Dean, Sr. VP and GM, Endoluminal
More and more medical device manufacturers are adding robotic surgical systems to their portfolios, indicated for an array of surgical procedures from gastrointestinal to orthopedic. Seemingly just as common, however, are firms experiencing delays, development challenges, lawsuits, and other obstacles to achieving success in the space.
Then there’s Intuitive Surgical.
Intuitive essentially gave birth to the robotic surgical scene more than two decades ago and has been improving the technology, adding procedures, and gaining market share the entire time. Meanwhile, larger organizations with more financial resources pale in comparison in terms of progress.
“We see decades of opportunity in developing and deploying technology-enabled ecosystems to address acute care and we are in a strong position. We focus on what we can control and deal with reality as it is, not as we hope it could be,” Intuitive CEO Gary Guthart, Ph.D., stated in his letter to shareholders in the firm’s annual report.
ANALYST INSIGHTS: While its key upcoming larger (MDT and Ethicon) competitors continue their delays in launching their robotic solutions, Intuitive Surgical simply keeps humming along, taking advantage of its market leadership in a growing category. Intuitive is executing on all cylinders as it maximizes revenue from its current footprint (install base) while bringing out innovative new robotic solutions to expand procedural applicability for its solutions. The question is, “When will MDT or Ethicon get tired of chasing them and simply buy them?” Wild Card—Stryker could make a play some day. Let’s see what happens!
—Dave Sheppard, Co-Founder and Managing Director, MedWorld Advisors
Through the end of its latest fiscal year, Intuitive has achieved some significant milestones. Approximately 1.875 million procedures were performed with its da Vinci system, which bested 2021’s total by 18%. The installed base for the system increased by 12% (7,544). Meanwhile, procedures using the Ion system totaled 23,500, which reflected an astounding 218% growth. The installed base for this product rose 149% to reach 321 systems.
The financial picture is also a positive tale overall. The company ballooned 9% in FY22, which translated to $6.22 billion. Within the Product segment, which tallied $5.2 billion and accounted for 84% of Intuitive’s total revenue, resides Instruments and Accessories and Systems. The former inflated 13% for a $3.52 billion total, while the latter dipped by 1% to finish with $1.68 billion. The other main unit for Intuitive, Service, grew by almost 12% to post $1.02 billion.
In addition to gaining more ground on competitors through increased sales and system placements, Intuitive also puts forth effort into training surgeons on how to use these advanced technologies. In fact, the organization was recognized for its initiative to do so by the Royal College of Surgeons of England, the largest robotic-assisted surgery provider to achieve the honor.
In a different area of the globe, the company made headlines for gaining clearance from Japan’s Ministry of Health, Labour and Welfare for its da Vinci SP surgical system. The agency’s OK permitted the system to be used in general surgeries, thoracic surgeries (excluding cardiac procedures and intercostal approaches), urologic surgeries, gynecological surgeries, and trans-oral head and neck surgeries. The da Vinci SP system provides surgeons with robotic-assisted technology designed for deep and narrow access to tissue in the body. The ability to enter the body through a single, small incision helps enable a minimally invasive experience for complex procedures.
Although many leading firms do stand to become competitors to Intuitive through their own robotic surgical development efforts, others present opportunities for partnerships that aid both organizations and, of course, the patients they ultimately serve. One such arrangement was made in the middle of the 2022 fiscal year between Intuitive and Siemens Healthineers. The FDA granted clearance for the latter’s mobile cone-beam CT imaging technology to be used in conjunction with the Ion Endoluminal System, used for robotic-assisted bronchoscopy. Siemens’ Cios Spin mobile imaging offers integrated functionality with Ion to provide 2D and 3D imaging during procedures to help physicians gain confidence around refining Ion’s catheter positioning and help improve biopsy tool placement.
Unfortunately, not all of the news was positive for Intuitive. A Reuters article revealed a patent dispute had been revived. J&J’s Auris Health unit’s patent challenge was given life by a U.S. Court of Appeals decision. It ordered the U.S. Patent and Trademark Office’s patent tribunal to revisit an earlier decision it made regarding a 2012 patent Intuitive holds. Auris is seeking to invalidate Intuitive’s patent, citing the earlier decision relied on “general industry skepticism” of robotic surgery. A final decision regarding the issue has yet to be made public.