Intuitive surgical surgery if da Vinci systems reach 25% of the global market for surgical robots?



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Dr. David Partrick, on the right, completes what appears to be the first pediatric operation using the da Vinci surgical robot on Monday, August 11, 2003 at the Denver Children's Hospital. (AP Photo / Kathryn Scott Osler, Pool) Photo Credit: ASSOCIÉ PRESS

Intuitive surgery (NASDAQ: ISRG) could see its stock price rise by more than 30%, if Da Vinci systems earn 25% of the global market for surgical robots. The da Vinci surgical systems have experienced strong growth in recent years, with sales exceeding $ 1.1 billion in 2018, representing growth of over 21% over the previous year. According to Trefis' badysis, this can be attributed to an overall increase in demand for robotic surgical procedures, given its benefits for surgeons and patients. Below we discuss the upside potential for Intuitive Surgical based on the sales growth of its da Vinci systems. We created an interactive dashboard badysis ~ What's the point for intuitive surgical procedures: if da Vinci systems conquer 25% of the global market for surgical robots by 2025? You can adjust various factors to see the impact on adjusted earnings and price estimation, based on da Vinci sales. In addition, here is more Health data.

Current market share of da Vinci Systems ~ 17%

Trefis

The current market share of the da Vinci systems, which stands at 17%, results from its reported sales of $ 1.1 billion and the estimated size of the global market for surgical robots of a little more than of $ 6.8 billion in 2018. The da Vinci systems are computer-badisted surgical systems that help minimally invasive surgeons by controlling the device from a console. The system has several arms to hold the surgical tools needed for surgery, as well as an endoscopic camera, which allows surgeons to look inside the body with a 3D view.

The global market for surgical robots is expected to increase in low teens

The global market for surgical robots is expected to grow at a CAGR of 13.8% $ 17 billion by 2025. This growth is likely to be driven by increased demand for minimally invasive procedures. It is estimated that more a million Surgical procedures were performed using da Vinci systems in 2018, and more than six million since its launch.

If Vinci's systems manage to gain 25% of the market in 2025, compared to 17% currently, additional sales will reach more than $ 1.4 billion. This is possible since the da Vinci system has several advantages over the usual surgical procedures. Surgical systems not only provide surgeons with a range of motion similar to that of the human wrist in the surgical field, but also eliminate the instability of the human hand. In addition, these minimally invasive surgeries have the following benefits: reduced number of surgical complications, faster recovery process, and reduced hospitalization costs. In addition, these surgical systems have been widely adopted for some procedures, but there are still many for which they have not been adopted. Until a few years ago, the most common procedures were prostatectomies and hysterectomies, which accounted for more than 50% of the total procedures using da Vinci systems. However, other procedures are being adopted at a faster pace and we expect this to continue in the future. A wider range of possible procedures will likely result in increased demand for the company's systems. Given these factors, da Vinci systems will likely continue to experience strong growth over the next few years and gain market share in the global market for surgical robots.

How does da Vinci Systems' market share gain from Intuitive Surgical's revenue? Price estimate?

If Vinci's systems are able to acquire a 25% share in the global market for surgical robots, the result will be a differential profit of $ 3.95 on an adjusted basis. We use an adjusted net profit margin of 34.5%, similar to that of the entire Intuitive Surgical company in calculating the impact on the RPP. We are using a multiple price of 47 times to gain an impact of $ 186 on Intuitive Surgical's share price, a 33% increase from its current price of $ 562 in the market.

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Dr. David Partrick, on the right, completes what appears to be the first pediatric operation using the da Vinci surgical robot on Monday, August 11, 2003 at the Denver Children's Hospital. (AP Photo / Kathryn Scott Osler, Pool) Photo Credit: ASSOCIÉ PRESS

Intuitive Surgical (NASDAQ: ISRG) could see its share price rise by more than 30% if Vinci systems earn 25% of the global market for surgical robots. The da Vinci surgical systems have experienced strong growth in recent years, with sales exceeding $ 1.1 billion in 2018, representing growth of over 21% over the previous year. According to Trefis' badysis, this can be attributed to an overall increase in demand for robotic surgical procedures, given its benefits for surgeons and patients. Below we discuss the upside potential for Intuitive Surgical based on the sales growth of its da Vinci systems. We created an interactive dashboard badysis ~ What's the point for intuitive surgical procedures: if da Vinci systems conquer 25% of the global market for surgical robots by 2025? You can adjust various factors to see the impact on adjusted earnings and price estimation, based on da Vinci sales. In addition, here is more data on health care.

The current market share of the da Vinci systems, which stands at 17%, results from its reported sales of $ 1.1 billion and the estimated size of the global market for surgical robots of a little more than of $ 6.8 billion in 2018. The da Vinci systems are computer-badisted surgical systems that help minimally invasive surgeons by controlling the device from a console. The system has several arms to hold the surgical tools needed for surgery, as well as an endoscopic camera, which allows surgeons to look inside the body with a 3D view.

The global market for surgical robots is expected to increase in low teens

The global market for surgical robots is expected to post an annual compound growth rate (CAGR) of 13.8% to reach $ 17 billion by 2025. This growth is likely to be driven by increased demand for invasive. It is estimated that more than one million surgeries have been performed using da Vinci systems in 2018 and more than six million since its launch.

If Vinci's systems are able to capture a 25% market share by 2025, up from 17% today, this will result in additional revenue of more than $ 1.4 billion. This is possible since the da Vinci system has several advantages over the usual surgical procedures. Surgical systems not only provide surgeons with a range of motion similar to that of the human wrist in the surgical field, but also eliminate the instability of the human hand. In addition, these minimally invasive surgeries have the following benefits: reduced number of surgical complications, faster recovery process, and reduced hospitalization costs. In addition, these surgical systems have been widely adopted for some procedures, but there are still many for which they have not been adopted. Until a few years ago, the most common procedures were prostatectomies and hysterectomies, which accounted for more than 50% of the total procedures using da Vinci systems. However, other procedures are being adopted at a faster pace and we expect this to continue in the future. A wider range of possible procedures will likely result in increased demand for the company's systems. Given these factors, da Vinci systems will likely continue to experience strong growth over the next few years and gain market share in the global market for surgical robots.

How does da Vinci Systems' market share gain the benefits and pricing of Intuitive Surgical?

If Vinci's systems are able to acquire a 25% share in the global market for surgical robots, the result will be a differential profit of $ 3.95 on an adjusted basis. We use an adjusted net profit margin of 34.5%, similar to that of the entire Intuitive Surgical company in calculating the impact on the RPP. We are using a multiple price of 47 times to gain an impact of $ 186 on Intuitive Surgical's share price, a 33% increase from its current price of $ 562 in the market.

What is behind Trefis? Find out how this feeds new collaboration and badumptions

For CFO and financial teams | Product, Research and Development and Marketing Teams

More searches on Trefis

Do you like our cards? Explore examples of interactive dashboards and create your own.

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