Lower -cost , more -effective si ngle -port solutio n suggests
moderate advantage for TransEnterix
As of Sept. 30, 2013, Intuitive Surgical had a worldwide installed base of 2,871 da
Vinci systems, 2,042 of which were installed in the U.S. Our research indicates over
60% of hospitals in the U.S. with more than 200 beds own at least one da Vinci system,
and over 70% of U.S. hospitals with 300 or more beds own a da Vinci.
As mentioned in our previous reports, we believe Intuitive has encountered resistence
in selling $2 million da Vinci systems to small hospitals with fewer than 200
beds, and it has also been difficult for the company to sell a second or third system
to larger hospitals. While we do not think hospitals will likely replace an existing da
Vinci system with a competing solution, we believe less-costly options could make
their way into hospitals that already own at least one da Vinci. As shown in Table 3,
TransEnterix's SurgiBot will likely have a distinct cost advantage compared to Intuitive
Surgical's da Vinci.
With the growth of robotic prostatectomies and non-malignant hysterectomies slowing
in the U.S., we believe cholecystectomies will be the next large opportunity for
Intuitive. However, we are not certain whether this opportunity will drive system sales
or merely Single-Site instrument kit sales. Further, based on our conversations with
hospital administrators, we believe many would opt for a single-port-specific robotic
system at a fraction of the cost of a da Vinci system as long as the efficacy and
safety rates were comparable.
With an estimated 900,000 cholecystectomies being performed in the U.S. in 2013,
we believe there is ample room for at least two single-port surgical robotics vendors.
TAB LE 3
Cost Profile: Intuitive Surgical's da Vinci vs. TransEnterix's SurgiBot
Intuitive Surgical da Vinci TransEnterix SurgiBot*
Capital Cost
Low end $1,500,000 $500,000
High end $2,000,000 N/A
Single-Site kit** $80,000 N/A
Cost per procedure
Single-port $1,500 $1,500
Multi-port $1,850 N/A
Annual service agreement $175,000 $50,000
Source: Intuitive Surgical, TransEnterix, First Analysis estimates
