Intuitive Surgical, Inc.
(ISRG - Free Report
) has announced the start of direct operations in India through its distributor Vattikuti Technologies Pvt. Ltd.
Post the announcement, Intuitive Surgical’s share price rose 0.3% to close at $454.63. In the past six months, shares of the company have rallied 14.6%, significantly outperforming the industry
’s decline of 10.2%.
The stock sports a Zacks Rank #1 (Strong Buy).
Notably, Vattikuti provides high technology solutions in healthcare and allied industries and is an authorized distributor of da Vinci surgical systems in India.
Per Vattikuti’s management, the company plans to install a total of 200 da Vinci robots every year in India by 2020, courtesy of its robust demand in the country. Each of the robots costs around $1.2-$2 million. Evidently, this will drive Intuitive Surgical’s overseas revenues significantly.
The Silicon Valley-based pioneer in the field of robotic-assisted, minimally invasive surgery will set up its sixth international headquarters in Bengaluru, India, where employees in sales, marketing, field service engineering, and business operations will support customers throughout the country.
The latest development will not only ascertain wider collaboration opportunities between Intuitive Surgical and India’s surgical community but will also fortify the company’s foothold in Asia.
da Vinci: International Accomplishments
In the last reported quarter, Intuitive Surgical’s OUS (Outside United States) system placements were 73, including 45 in the Europe and nine in Japan.
Internationally, the company continues to enjoy substantial opportunities in Japan, South Korea and China.
The flagship da Vinci system witnessed continued growth in urological procedures in Europe and Asia, and multispecialty growth in China.
Moreover, additional procedures were granted reimbursement by the Ministry of Health in Japan. Additionally, the da Vinci X surgical systems received regulatory clearance from PMDA (Pharmaceuticals and Medical Devices Agency) in Japan and was showcased at a large surgical society meeting, shortly thereafter.
Per management, Intuitive Surgical has installed 68 da Vinci systems so far in India.
Per research by Business Standard, India’s surgical robotics market is estimated to see a CAGR of 20% between 2017 and 2025 to scale to a worth of $350 million, compared with $64.9 million in 2016.
The rising incidence of chronic diseases, increasing geriatric population, growing demand of minimally-invasive surgeries and technological advancements in the field of medical surgeries are some of the factors that are fueling demand for surgical robotic systems.
Hence it can be concluded that Intuitive Surgical’s move has been a timely and strategic one.
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