Recently, Medtronic, the world's largest medical device manufacturer, has reached a strategic cooperation agreement with Mazor, a specialist surgical robot manufacturer. On a global scale, Medtronic will be marketing the Mazor Spinal Surgery “Revival Robot”. What does it mean? Is it a win-win or a win? Manufacturers, hospitals, patients, who benefits more?

Since the Da Vinci surgical robot has verified the business opportunities and future prospects in the field of intelligent medical robots (Intuitive Surgical is a Nasdaq singer, it only rises and does not fall!), more and more medical equipment manufacturers, robots Development agencies, and even Internet companies, are pouring into the field of medical robots. Investors are also pushing for a bucket of gold.

However, in addition to the Da Vinci robots in the past decade, there is no second surgical robot manufacturer that has become a climate. There are strict regulatory approval factors for medical robots, and more importantly, the limitations of traditional medical procedures and doctor training models. There is no complete medical robot professional skills training system. Advanced intelligent robots have not yet played their advantages in medical practice.

Mazor robot's unique surgical field

According to statistics, at least 500,000 patients in the United States undergo spinal implant surgery each year (the number of domestic patients will double, not less than 1 million). Mazor believes that “Reviving Robots” not only helps surgeons to perform surgical procedures more accurately, but also reduces patient suffering and accelerates recovery during surgery.

At present, Mazor's “Revival Robot” has sold 100 units worldwide, and the clinical application effect is very good. The Mazor robot can assist the surgeon in pre-establishing the surgical plan and procedures. Once the surgical site of the patient's spine is fixed, the robot can then automatically complete the surgical procedure without the need for a doctor.

Another obvious advantage is that in orthopedic surgery, X-shots are usually taken to determine the position, causing the surgeon and patient to be exposed to radiation risks. The use of Mazor "Revival Robot" greatly reduces the passive exposure to radiation during filming due to filming. Clinical studies have reported that compared with conventional spinal surgery, the Mazor "Revival Robot" assisted surgery reduces the dose of radiation received by patients and doctors by 56%. More importantly, the patient's healing process is significantly shortened, as well as fewer adverse complications (spinal plexus injury and scar scarring).

DaVinci robots validate the future of medical robots

In the field of medical robots, the Da Vinci surgical robot system has been the leader for more than 10 years. More than 3,660 units have been equipped worldwide, and more than 50 units are equipped in China, all in large-scale top three hospitals. The number of Da Vinci surgeries worldwide has risen to 650,000 cases per year, and the number of surgical cases in 2015 has increased by 14% compared to 2014. Domestic Da Vinci robot-assisted minimally invasive surgery cases have exceeded 10,000 cases per year. Still growing rapidly.

There is no doubt that the Da Vinci robot validates the proven technology and clinical application advantages of the intelligent robot (Proof of Concept). This is an inevitable trend in the future development of clinical medicine.

The ensuing tangles are the problem of robotic equipment prices and surgical costs. Da Vinci robots cost about $1.5 million each (US market price, domestic price is around 20 million yuan), at the same time, manufacturers can earn an average of $1,840 from each surgical consumables and auxiliary spare parts. .

The Mazor robot completely replicates the business profit model of the Da Vinci robot, namely: the Mazor “Revival Robot” sells for about $850,000 (US market price) and earns an average of $1,500 from each surgical consumable and spare parts.

For this reason alone, Mazor's sales in the first quarter of this year reached $64 million, a 42% increase from the previous year. Based on this, it is speculated that this year's sales profit will have a sustainable growth rate of around 41%.

Medtronic helps the promotion of surgical robots

Agent sales between Medtronic and Mazor is a short-term cooperation (by the end of 2017), both of which are testing the difficulty and profit model of marketing applications. To this end, Medtronic invested nearly $12 million to replace 4% of Razor's shares. If the situation is good, Medtronic will be interested in increasing its 11% stake in Mazor and expanding its sales team.

However, Mazor is still in financial loss. In the last year alone, the company's operations and investment exceeded 36% of sales (36% of book losses). As Medtronic joined and promoted sales in the global market, it has quickly seen initial growth (acquisition of 15 additional robots). .

In short, compared to the $23.4 billion stock market assets of the Da Vinci robot manufacturer, Intuitive Surgery, Mazor Robotics is only a small company with a size of $300 million. Not yet to reach the Finch Robotics company. But whether it is direct investment or shareholding, the industry is optimistic about the development trend of Mazor. Because the future may be the world of specialist medical robots.

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