Intuitive Surgical, Inc. (ISRG - Free Report) recently announced the FDA approval of two technologies for two of the company’s da Vinci surgical systems. With the recent FDA nod, Intuitive Surgical – a global technology leader in minimally invasive care and the pioneer of robotic-assisted surgery – is likely to witness further momentum in its da Vinci surgical system. The clearance for these two innovative technologies is expected to enhance procedures that required sealing.
Notably, the da Vinci System is powered by robotic technology that has provided it with a solid exposure to medical mechatronics, robotics and AI for healthcare.
Few Words on E-100 Generator and SynchroSeal
Intuitive Surgical’s E-100 generator is its first internally developed robotic generator that will help in powering two important instruments on the da Vinci X and Xi systems. The generator is provided as an upgrade to power Vessel Sealer Extend — a flagship instrument in the da Vinci energy sealing portfolio currently — and SynchroSeal.
SynchroSeal offers improved versatility to the da Vinci Energy portfolio with the help of its wristed articulation, rapid sealing cycle and refined curved jaw. In fact, SynchroSeal instrument provides enhanced capabilities in general surgery.
These two new technologies will enable surgeons to quickly seal and transect tissue and vessels, thereby making the process efficient.
The FDA nod is likely to strengthen Intuitive Surgical’s da Vinci surgical system and provide impetus to its commitment toward introducing innovative technologies for surgical systems.
Notably, in the third quarter of 2019, da Vinci procedures improved 20% globally compared with the third quarter of last year. The upside was driven by healthy growth in U.S. General Surgery. In the quarter, Intuitive Surgical placed 275 da Vinci surgical systems, with the installed base growing 12% year over year.
Another Key Development
Per management, the company aims to advance its new platforms of imaging, advanced instruments, da Vinci SP and the flexible catheter platform.
With respect to da Vinci SP, in March 2019, the company received FDA nod for the use of da Vinci SP surgical system in certain transoral otolaryngology procedures in adults. Surgeons can now utilize da Vinci SP robotic-assisted surgery to conduct radical tonsillectomy and tongue base resection. This in turn fortifies Intuitive Surgical’s position in the global robotic-surgery market. (Read more: Intuitive Surgical da Vinci SP Gets FDA Nod, Prospects Bright)
Per a report by MarketsandMarkets, the surgical robots market is anticipated to improve from $3.9 billion in 2018 to $6.5 billion by 2023 at a CAGR of 10.4% during the forecast period. Technological advancements in robotic systems, increase in funding for research and development (R&D), growing application and rise in the adoption of surgical robots by hospitals and ambulatory surgical centers are the key factors driving this market.
Two other key players in the robotic surgery market worth mentioning are Accuray Incorporated (ARAY - Free Report) and Stryker Corporation (SYK - Free Report) . Accuray’s fully robotic CyberKnife radiosurgery and stereotactic body radiation therapy systems and Stryker’s flagship Mako, a robotic-arm assisted surgery platform, are currently in demand.
Zacks Rank and Share Price Performance
Currently, Intuitive Surgical carries a Zacks Rank of 3 (Hold). Shares of Intuitive Surgical have gained 12.3% compared with the industry’s growth of 8% in a year’s time. Meanwhile, the S&P 500 Index has rallied 13.3% in the same timeframe.
A Stock to Consider
A better-ranked stock from the broader medical space is Conmed Corporation (CNMD - Free Report) , currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Conmed has a long-term earnings growth rate of 17%.
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