Intelligent Questions,
The following questions are paramount, and germane to MDT creating a winning strategy from which to compete against ISRG. Otherwise, why create HUGO at all? Why does HUGO exist? These questions are directly applicable to the speculation regarding the benefits and reasons to have discussions - now, regarding a BO, or further agreements with TMDI.
You can start by answering the following: How will MDT build an SP robot from only 15 patents, for camera(s) and end effectors? Without spending 4-5 years doing it, spending more than $350M and assuming the risk that the design will pass through USPTO.
If MDT does make one - +5 years in the future, there's additional competition against ENOS and another global company? So now MDT competes against ENOS (with some of the same IP) and ISRG? With 1 decision - MDT doubles the competition. So you think MDT will actively work to create that competitive scenario? Remember - Martha hates to share.
MDT established those Loan conditions and limitations to keep competitors away from TMDI. I speculate that it's also a test and evaluation of TMDI's capabilities as an R&D company. The fact that once the loan is paid, any "cover" from which MDT required those severe limitations on communication with other companies, is gone. All that work to establish limitations, to let them evaporate without further negotiations? 1 step forward, 2 steps back?
Why only HUGO? Presenting multiple options simultaneously during a customer meeting is called a leveraged sales strategy. MDT does not have a leveraged sales strategy with only HUGO. I would never try and compete with ISRG, with only HUGO. Presenting HUGO to capture an ISRG account, with only a single RAS device has a very low success rate. This is far, far from optimal. I would go so far as to say it's a waste of time.
I understand the context of competition, and ISRG WILL create problems that must be addressed, with contingencies. MDT has the ability to change the RAS competitive dynamic and counter those problems FOR THE NEXT 20-30 YEARS by owning TMDI IP and ENOS. An optimally better sales proposition, if you want to compete with ISRG. These points are additional speculative reasons MDT should be negotiating to keep TMDI away from the competition - right now. Time and opportunity wait for no one. Do you think ISRG will let their R&D department go on hiatus for the next 5 years? Time and opportunity wait for no one.
So do we conclude that you think MDT only wants to compete with HUGO? That's your theory? If it isn't please tell us which RAS SP they should be pursuing - right now. Which other RAS SP company are they currently working with? Those are additional intelligent questions.
Or do you think MDT wants to create their own SP organically? Which is totally contrary to the CEO's statements as to how they WILL be successful going forward. Acquiring assets is his forte, and stated business model from which to grow the company and revenue. Do you don't believe him? That's another intelligent question.
Sometimes - as in this case, keeping this IP away from the 800# gorilla is critical. If ISRG gets this - MDT will be seriously hurt, with the inability to recover within +5 years, and perhaps much longer.
Timing and opportunity wait for no one. MDT is here - now. That's why I think TMDI and MDT are in negotiations to extend this partnership, ultimately into a BO. MDT has done it +60 times this way.
Good luck to all. Regards,BK.
AI
