Intuitive ecosystem means J&J, Medtronic will take years to gain surgical robot market share: analyst

Dive briefs:

  • According to analysts at William Blair, Intuitive Surgical’s significant market opportunity and strong pipeline will enable it to deliver sustained growth despite increased competition and regulatory challenges.
  • Analysts say it will take Medtronic, Johnson & Johnson and other competitors years to establish the “basic ecosystem” of products and services needed to capture significant market share. I argue that it is possible.
  • In a memo opening the company’s coverage, analysts say Intuitive is well positioned to meet long-term growth expectations and maintain market share.

Dive Insight:

The investor note provides an overview of the robotic surgery market and Intuitive’s position at a time when the sector is growing and changing. After years of Intuitive’s de facto monopoly, the robotic surgery leader now faces new competition from companies with the resources to continue to assault the market, including Medtronic and J&J.

Analysts acknowledged that “competition could impede future growth,” but expected Intuitive to maintain its leadership position “even as new entrants increase their competitive offerings.” I’m here. That view is based on the belief that Intuitive’s platform “creates a sustainable competitive moat.”

“Intuitive’s extensive ecosystem – hardware, software, training and support – has been critical to the company’s past and future success and should provide a lasting advantage,” the analyst wrote. “This ecosystem has made Intuitive a key partner while facilitating meaningful adoption of robotics. We need to replicate not only the entire ecosystem.”

This statement reflects BTIG’s conclusion analysts reached After attending the 2022 Conference of the Society of Robotic Surgery. BTIG analysts believe Intuitive’s ecosystem of “advanced analytics, cutting-edge image processing, virtual and augmented reality, and cloud computing” will enable large-scale robotic surgeons and institutions to become a new competitive system. He points out that it is getting harder to switch.

As William Blair’s analysts look at things, Medtronic, J&J, and the rest of the tracking group have “years and years” to establish the “basic ecosystem” needed to offer a package that rivals Intuitive. J&J and Medtronic are lagging behind in bringing soft-tissue robots called Ottava and Hugo, respectively, to the U.S. market. Recent J&J dismissed staff, and small businesses such as Titan Medical, collapsed crack the market

Analysts believe all companies, including Intuitive, could face regulatory delays, saying the U.S. Food and Drug Administration “seems to be more stringent in its approval of robotic surgery recently.” I’m here. While this trend may delay the approval of Intuitive’s next-generation system, analysts see it as “another moat of competition for Intuitive. New competitors are da Vinci’s current use cases and We need to invest more capital in clinical trials and expanded labeling to compete.”

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