Healthcare
ISRG shares have come under pressure amid rising concerns about competition from remanufacturers. In March, Restore Robotics’ Iconocare Health received 510(k) approval to remanufacture the 8mm Monopolar Scissors (SKU 470179) for the DaVinci Xi system, following similar approval for the DaVinci Si system in 2022. MedMine analysed data from over 1,000 healthcare facilities and found that this SKU represents ~14% of ISRG’s US I&A sales. However, over 98.5% of purchases still come directly from ISRG, with no meaningful signs of remanufactured alternatives gaining traction. While remanufacturing poses a potential long-term threat, MedMine sees no current evidence of hospital adoption and will continue to track the trend closely.
Edition: 214
- 27 June, 2025
Healthcare & Trade Tariffs: Rising costs, disrupted supply and industry response
Healthcare
The trade tariffs imposed by the Trump Administration are expected to raise healthcare costs, disrupt the supply chain and make care less affordable for patients. Companies are trying to mitigate these issues through initiatives such as on-shoring manufacturing and sourcing from unaffected countries; however, these measures face regulatory challenges and will require time to implement. Within the medical devices and hospital supply sector, the impact of these tariffs varies among companies. For instance, Johnson & Johnson, Medtronic and Intuitive Surgical have manufacturing exposure in China and Mexico, whereas Boston Scientific and Edwards Lifesciences do not. MedMine monitors spending on medical devices and hospital supplies at ~3,000 hospitals and related healthcare providers across the US, providing valuable insights into the effects of these tariffs.
Edition: 204
- 07 February, 2025
Healthcare and AI: A complete check-up
The Sustainable Market Strategies team’s latest report examines the impact of AI in healthcare, which is growing at a rapid pace but is bringing about significant cause for concern. One major issue is bias, with AI risking exacerbating existing health disparities when trained on data that lack diversity. There are also worries around safety, privacy and security, loss of personal interaction and job displacement. As it stands, regulation of AI in healthcare is very limited, but this will grow over time. The companies that will be best positioned for the future will be those that proactively engage with regulators to shape effective and fair AI policies. Although concerns are valid, the healthcare sector stands to benefit the most positively from AI. Potential winners include Sysmex, Fresenius, Hologic and Intuitive Surgical.
Edition: 187
- 31 May, 2024
Healthcare
China's laparoscopic robots sector looks set to benefit from policy updates and hospital procurement. With over 180 certificates expected by mid-2024, tender volumes could double, offering significant growth potential. Domestic manufacturers, including MedBot, are gaining market share with second-generation devices narrowing the gap in stability and cost. Toumai, a product of MedBot with government support and competitive pricing, presents a strong alternative to Intuitive Surgical’s da Vinci system which currently boasts c.90% market share.
Edition: 181
- 08 March, 2024
Healthcare
Another disappointing quarter for ISRG with more of the same - a greater mix of operating leases weighing on Systems revenue, competition pressuring ASPs and GLP-1s clouding the outlook for bariatric procedure growth. While management claims it has not yet seen competitive pricing pressures outside of China, OWS thinks China is the canary in the coal mine. Moreover, it is not a question of whether new systems are “better” than Da Vinci, but rather are they “good enough” and cheaper. As OWS detailed in their initiation report, even share loss of just 5-10% in the next five years would have very significant negative impacts on ISRG’s shipment and procedure growth.
Edition: 172
- 27 October, 2023
The rise of Chinese surgical robots
Healthcare
Opportunity for domestic brands amid the expiration of several patents belonging to market leader Intuitive Surgical and its da Vinci robot. Only 0.13% of surgical procedures were performed by robots in China in 2020 (vs. 13% in US). First-mover advantage in branding and costs will be crucial given 30,000 parts the R&D involves and ongoing product iteration. Re. endoscopic surgical robots (the most widely used medical robot), MicroPort and Shandong Wego lead the way with their Toumai and Miaoshou robots which are expected to be approved in 2021-2022.
Edition: 120
- 01 October, 2021
Technology
Pre-IPO research - Medbot is looking to raise around US$1bn in its HK listing. It designs, develops and commercialises surgical robots. The company is pre-revenue but its flagship products are near the registration approval stage. Globally, Intuitive Surgical with a M/Cap of US$100bn+, dominates the market. Intuitive’s products are the industry standard but are expensive which might allow Medbot to penetrate. It is a subsidiary of MicroPort, which will make it easier for it to enter hospitals.
Edition: 117
- 20 August, 2021