With innovation rapidly changing the face of healthcare space, minimally invasive surgery (MIS) is becoming a crucial part of general surgery. In fact, it is being preferred over the traditional open surgery and laparoscopic techniques. Apart from lowering treatment costs, these surgical procedures have received widespread clinical acceptance owing to their advantages over open surgeries, like lesser incisions and post-operative complications, and faster recovery, thereby making MIS highly desirable.
Per a report by Research and Markets, the global MIS systems market is projected to reach $58.2 billion, witnessing a CAGR of 8% from 2019-2024. Increasing demand for MIS procedures, rising surgical need particularly among the growing geriatric population, and the prevalence of arthritis, cancer and cardiovascular diseases are driving the market.
Interestingly, North America is the leading contributor to the global minimally invasive surgical systems market. Notably, in 2017, in terms of revenues, North America contributed around $9.31 billion and is expected to see a CAGR of 12.9% from 2018-2025.
Needless to say, investors can take a look at the space as MIS presents alluring prospects for the MedTech players.
Technological Advancement in MIS
Innovation in healthcare is a dynamic and continuous process. Here we will discuss about how three key technologies will help to revolutionize MIS.
The potential for this type of surgery was recognized nearly two decades back. According to MedTech Boston, in the near future, robots will be able to do the mechanical setup for the surgery by correctly positioning the right tools in the patient’s body. Moreover, usage of robotic surgery devices remotely from anywhere in the world will become possible, thereby making high-quality surgeries accessible to millions of people.
Notably, Intuitive Surgical received FDA approval for the da Vinci Surgical System in 2000. Since then, the company has amassed an installed base of over 2,900 systems in the United States and over 4,500, globally.
Per a new report by Data Bridge Market Research, the global surgical robots market is estimated to reach $19.41 billion by 2026 at a CAGR of 14.1%.
Predictive Modeling and AI Using Big Data
In the age of informatics, it is now possible to collect, analyze and share data enabling surgeons to make better and informed decisions in real time.
One of the biggest areas for data capture and analysis in hospitals is surgical workflows. A smooth workflow lowers the chance of complications, reduces the time spent under anesthesia and minimizes staff fatigue to make for a more vigilant and capable workforce.
Enhanced Real-Time Imaging
When it comes to real-time imaging in MIS, fluoroscopy deserves a mention. Fluoroscopy is a medical imaging technology that is widely used to create real-time movies of internal body structures through X-ray radiation.
In United States alone, over 5 million fluoroscopic procedures are performed every year. With improvement in MIS technology, this number is only growing. These minimally invasive interventions offer a better, safer and cheaper solution when compared to open surgery.
Stocks With Strong MIS Prospects
Here are three MedTech stocks that have been exhibiting significant potential in the MIS space:
Intuitive Surgical, Inc. (ISRG - Free Report) : Intuitive Surgical’s robot-based da Vinci surgical system is powered by robotic technology. This has provided the company with valuable knowledge about the use of medical mechatronics, robotics and AI for healthcare, which in turn has strengthened its position in the space. In 2017, the company got the FDA approval for its new budget friendly da Vinci X robotic surgical system. The company is known for continuously introducing technologies for surgical systems.
For 2019, this Zacks Rank #2 (Buy) company’s Zacks Consensus Estimate for revenues is pegged at $4.40 billion, indicating an improvement of 18.1% from the year-ago period. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Over the past year, Intuitive Surgical’s shares have gained 18.1%, outperforming the industry’s growth of 13.2%.
Stryker Corporation (SYK - Free Report) : In 2017, Stryker captured the second position in the robotic-assisted surgery system market. The company’s strong position can be attributed to the sustained robust sales of its Mako robotic arm. Notably, Mako system is the first and only robotic technology that can be used for total knee, hip and partial knee replacement procedures.
For 2019, Stryker’s Zacks Consensus Estimate for revenues is pegged at $14.85 billion, suggesting growth of 9.2% from the year-ago period. The company carries a Zacks Rank #3 (Hold).
Over the past year, Stryker’s shares have gained 20%, outperforming the industry’s rally of 9%.
Medtronic plc (MDT - Free Report) : In September this year, Medtronic unveiled a robot-assisted surgical platform that will be upgradable, modular and able to support laparoscopic applications. The company claims this system to be more cost-effective compared to systems already present in the market. This initiative has strengthened its already strong and extensive surgical instruments portfolio.
For fiscal 2020, the Zacks Rank #2 company’s Zacks Consensus Estimate for revenues is pegged at $31.52 billion, indicating an improvement of 3.2% from the year-ago period.
Over the past year, Medtronic’s shares have gained 19.9%, outperforming the industry’s growth of 9%.
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