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Mazor Robotics (NSDQ:MZOR) unveiled its next-generation robot-assisted surgery system and Globus Medical (NYSE:GMED) for the 1st time showcased the functional prototype of its Excelsius platform at the NASS 2016 meeting in Boston last week, signifying an increased interest in robotic surgeons among major players.
Mazor developed 3 generations of products over 15 years and does 95% of its business in spine surgery, according to Barclays. The Caesarea, Israel-based company’s next-gen Mazor X system, presented at this year’s North American Spine Society meeting, helps surgeons develop a pre-operative plan, make automated calculations, and provide intraoperative guidance to ensure that the plan is followed for each patient. It can also measure the length of time for each case, demographics and other important variables to improve case management.
“The Mazor X system is aimed at addressing unmet needs for a number of stakeholders including hospital management, vendors, patients, payors, and surgeons,” Barclays analysts wrote.
The list price of the robot surgeon is $900,000 and Mazor is also listing a brain model at $199k. Mazor’s agreement with Medtronic (NYSE:MDT) calls for it to receive $1,500 for the disposable and a midpoint $1,000 synergy fee if Medtronic implants are used. Mazor is selling the system and gets the full price, but a 20% commission goes to Medtronic during phase 1 of the agreement. In phase 2, there’s a distributor agreement, so the sale to Medtronic is at 40% to 45% less than list price.
Globus unveiled its investigational robotics system, Excelsius, telling Leerink Partners that it anticipates approval and launch in early- to mid-2017, with revenue unlikely until the 2nd half of next year.
