Robot-Assisted Surgery Gains Momentum Amid Coronavirus
We are nearing the end of this turbulent year with the global impact of the COVID-19 pandemic still ambiguous thanks to the recurrence of cases. The ramifications of the pandemic are being felt brutally in the medical field, as postponing and canceling elective surgeries not only worries patients but also hits companies that derive much of their revenue from such procedures.
With markets behaving unpredictably, investors need to feel nervous. However, robotic surgery is an area that could be worthwhile for investors in these troubled times and beyond. Let's dive deeper and analyze the factors that can improve the outlook for this space amid the pandemic.
Robotic Surgery: The Need of the Hour
The clinical benefits and importance of robotic surgery have never been as pronounced as it was during this pandemic, and the trend is set to continue beyond that. Robotic surgery not only leads to improved clinical outcomes for patients, but also to lower conversion rates to laparotomy. Now, laparotomy is tied to lengthy hospital stays, putting patients and healthcare providers at unnecessarily high risk of COVID-19 transmission. This is where robotic surgery can help limit the transmission of the virus and thus keep the spread in check.
In addition, increased adoption of robotic surgery can reduce the use of hospital resources, which is vital in such a crisis. This type of surgery can help minimize costs and reduce post-operative recovery time as well as the immediate post-operative pain and infection rates. That's not all. Aside from the benefits of lower complication rates, reducing surgical complications can help keep patients out of healthcare systems and emergency rooms.
The robot-assisted surgery can keep people who are COVID-19 negative away from high-risk areas. When tests are not available, this type of surgery is the fastest, most effective way to perform non-emergency procedures with minimal risk to staff so that patients can return home quickly.
For example, in July Smith & Nephew SNN launched Cori, a portable robotic platform for knee replacement surgery that allows for faster procedure times compared to their current Navio robotic system. The new surgical system, which received FDA 510 (k) clearance in February, includes the company's Real Intelligence software for preoperative planning, surgery, and postoperative assessment. This puts the company in a better position during this crisis and thus creates investor confidence in the stock.
3 Potential MedTech Stocks to Watch For
Stryker Corporation SYK continued to see strong demand for Mako - its robotic arm-assisted surgery platform - which was supported by its unique features and healthy order backlog despite financial constraints due to the COVID-19 pandemic. This in turn positions the company well to maintain momentum in robot sales and to offset market gains. For 2020, the company's mako order book remains solid and in line with a goal of further increasing stocks in both hips and knees. In fact, the company saw a promising number of Mako installs in the US in Q2 2020. For 2021, the Zacks consensus estimate for revenue is $ 15.95 billion, an improvement of 14.3% over the previous year.
Over the past three months, Zacks Rank # 3 (Hold) stocks are up 15.9% compared to an industry growth of 8.2%. The full list of today's Zacks # 1 (Strong Buy) Rank stocks can be found here.
Accuray Incorporated ARAY launched the CyberKnife S7 system - the next generation CyberKnife platform - in June 2020. It is the only robotic radiosurgery system that can perform non-surgical stereotactic treatments anywhere in the body with an accuracy of less than a millimeter. This new CyberKnife technology is the latest example of the company's innovation in radiation therapy, enabling healthcare providers to deliver the best possible care to patients with new features. For fiscal 2021, the Zacks Consensus estimate for revenue is set at $ 413.6 million, an improvement of 14% over the previous year.
Over the past three months, the company's shares in Zacks Rank # 3 are up 32.7%, compared to an industry growth of 8.7%.
Intuitive Surgical, Inc.'s da Vinci robot-based surgical system ISRG enables minimally invasive surgery that reduces the trauma associated with open surgery. Despite the challenging volume of procedures, Intuitive Surgical placed 5,764 da Vinci surgical systems in the second quarter, with the installed base growing 9% year over year.
In addition, in the second quarter, the company announced Zacks Rank # 3 its Extended Use program, which is some of its higher volume instruments that can be used for numerous Da Vinci surgeries. In addition, the company announced that it is making advances on its flexible robotic platform that aims to meet acute lung cancer diagnosis needs. For 2021, the Zacks consensus estimate for revenue is $ 4.95 billion, up 20.1% year over year.
The company's shares are up 20.3% over the past three months, compared with an industry growth of 8.7%.
Biggest technical breakthrough in a generation
Be one of the earliest investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon become obsolete and will be replaced by these new devices. It is expected to create 22 million jobs and generate $ 12.3 trillion in activity.
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Stryker Corporation (SYK): Free Stock Analysis Report
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