Post on 01-Nov-2014
description
Intuitive Surgical, Inc.
Ticker: ISRG
April 22, 2008
The Company
Intuitive Surgical is the global technology leader in the rapidly emerging field of robotic-assisted minimally invasive surgery (MIS). The Company's da Vinci® Surgical System offers surgeons superior visualization, enhanced dexterity, greater precision and ergonomic comfort for the optimal performance of MIS. The da Vinci System enables surgeons to perform even complex procedures, such as open-heart surgery, through 1-2 cm incisions.
History 1995 – Intuitive Surgical was founded Surgical robotics was little more than a medical
curiosity until the 1999 introduction of the da Vinci® Surgical System
2000 – da Vinci became first robotic surgical system cleared by FDA for general laparoscopic surgery
June 2000 – Successful ISRG IPO 2003 – Intuitive Surgical acquired its principal
competitor Computer Motion, strengthening its intellectual property holdings and ensuring its position as the world’s sole provider of robotic-assisted surgical systems
Now 795 da Vinci® System base as of 12/31/07
595 United States, 136 Europe, 64 Rest of World Exclusive rights to over 400 U.S. and foreign patents Relationships with industry leaders including IBM
Corporation, Massachusetts Institute of Technology, and Heartport, Inc. (Johnson & Johnson)
Industry collaborations with companies including Ethicon Endo-Surgery (Johnson & Johnson), Medtronic, and Olympus Optical
FDA clearances for laparoscopic, thoracoscopic, prostatectomy, cardiotomy, revascularization, urology, gynecology, and pediatric procedures da Vinci Prostatectomy procedure is currently the fastest-
growing treatment for prostate cancer (the second leading cause of cancer-related death in men)
Revenue Model
Source: Intuitive Surgical IR Presentation
“Taking surgical precision and technique beyond the limits of the human hand” ™
Source: Intuitive Surgical Corporate Overview Brochure
Hospital Benefits Market Share Growth
Increased patient satisfaction New patients and increased referrals Recruitment and retention of top surgical talent Enhanced hospital reputation
Maximizing Efficiencies Decreased length of stay Decreased complications Decreased blood transfusions Decreased nursing staff ratios Decreased post-operation pain management
Broad Utilization Mix Application across multiple surgical specialties
Cardiac“In MVST (Multi-Vessel Small Thoracotomy) our patients avoid sternotomy, CPB and aortic manipulation. As a result they benefit from reduced morbidity, shortened hospital stay, faster recovery and improvement of postoperative quality of life.”- Michael Argenziano, M.D.Assistant Professor of SurgeryColumbia University College of Physicians and Surgeons, New York Presbyterian Hospital
“The da Vinci® System makes it possible to offer a wider range of patients a minimally invasive open-heart procedure to repair the mitral valve. This will allow more patients to benefit from both shorter hospital stays and reduced recovery times.”- W. Randolph Chitwood, Jr. M.D.Professor and Chairman Department of SurgeryChief of Cardiothoracic SurgeryEast Carolina University School of Medicine
Source: Intuitive Surgical Corporate Overview Brochure
Urology“As a trained surgical oncologist, da Vinci® has allowed me to offer my patients a better cancer operation with improved clinical outcomes.”- Thomas E. Ahlering, M.D.
Associate Professor of Urology
Director, Urological Oncology
University of California Irvine Medical Center
“In my experience, robotics allows for greater surgical precision which leads to improvements in cancer control, potency, and urinary function.”- Mani Menon, M.D.
Director, Vattikuti Urology Institute
Henry Ford Health System
Source: Intuitive Surgical Corporate Overview Brochure
General Surgery“I can achieve superb clinical results in technically demanding operations such as Heller myotomy and Esophagectomy with fewer complications.”- Santiago Horgan, M.D.
Director of Minimally Invasive Surgery
University of Illinois, Chicago
Source: Intuitive Surgical Corporate Overview Brochure
Source: Intuitive Surgical IR Presentation
Source: Intuitive Surgical IR Presentation
IncomeStatement($M) Gross Margin 69.0% 66.5% 67.6% 63.4% 48.0%
Operating Margin 34.4% 28.8% 30.2% 15.3% (13.0%)
Net Margin 24.1% 19.3% 41.4% 16.9% (10.5%)
Source: Yahoo! Finance
Balance Sheet($M)
Source: Yahoo! Finance
Statement of Cash Flows($M)
Source: Yahoo! Finance
FCF/Revenue 30.2% 21.8% 17.5% 5.7% (14.2%)
Growth Potential Over 6000 hospitals in the U.S. alone; Intuitive
has only tapped about 795 worldwide Intuitive Surgical estimates 55% total procedure
growth in 2008 Intuitive Surgical estimates 40% dVP procedure
growth ACS estimates 186,295 new cases of prostate cancer in
2008
Intuitive Surgical estimates 150% dVH procedure growth
Over 600,000 women undergo hysterectomies every year
Reference
Intuitive Surgical, Inc. website (www.intuitivesurgical.com)