I really like the topic of robots in surgery. There are now more than 100 venture capital companies in the world developing technologies for robotic assisted surgery.
What is on the stock exchanges among public companies?
The pioneer in this industry is Intuitive surgical (ticker: ISRG), which has a market capitalization of nearly $ 100 billion.
But competitors are growing up. First competitor: Transenterix
Transenterix was founded in 2006 and is developing a system for digitizing the interface between surgeon and patient in order to improve minimally invasive surgery (MIS) through Digital Laparoscopy.
The digitization of the interface enables advanced capabilities such as augmented intelligence, communication and robotics in laparoscopy, and also enables us to address current clinical, cognitive and economic deficiencies in surgery. This system is the first machine vision system for use in robotic surgery, powered by the new Intelligent Surgical Unit ™ (ISU ™), which provides enhanced intelligence in surgery. Surgical …
At the moment, the following technologies in its product Senhance system:
- Image rendering
- Laparoscopy through 3 mm ports. FDA approved Sep. Oct 2018
- Feedback for instrument tactile sensations
Transenterix (TRXC) shares can be categorized as “penny stock”. The quotes were overclocked in 2017-2018 on expectations of the appearance of the second Da Vinci in robot-assisted surgery. However, miracles do not happen and the “bubble burst” and a long recession started, which ended with a reverse split of shares on December 12, 2019: the owners of 13 old shares were changed and 1 new one was credited. In 2020, there was another cycle of decline from $ 2.5 to 30 cents per negative news:
Dismissal of CEO
Firing the sales team
Additional share issues to finance operating activities (“burning the cache”)
Stocks are very volatile today. On options, Implied Volatility has risen to 200%!
Perhaps we are witnessing a rebirth from the ashes, or maybe this is another bubble ?!
Positive fundamental changes over the past year led by new CEO Anthony Fernando:
- 9 clinical programs initiated, 1458 operations performed
- Received FDA Approval to Use Machine Vision System and Intelligent Surgical Unit (ISU)
- Received CE marking for 3mm pediatric surgery instruments. First operations completed
- FDA filed for display module for general surgery
- Training center opened at Saitama Medical University, Japan
- Revenue in 2020 from 3 to 3.2 million dollars
- Registration certificate of the Russian Federation
The number of clinical applications worldwide has reached 1,458 per year. Main Areas: General Surgery, Urology, Genecology.
The main sales markets are outside the United States. Initially the development was based in Italy and from there it all started.
Quality business growth takes time and money (new investments).
Institutional and venture investors are now entering the company through additional share issues. The proceeds from the additional share issues will be used to finance operating activities and continue product development. The company received $ 140 million over the past year:
As you can see, the last add-on went for $ 3. Hype in the market helps attract more money to the business for fewer shares… Thus, $ 3 per share is a significant support level, at which there is a large volume of institutional entry.
Market Cap: $ 1.1 billion
For a company with such a product and plans to take over the world, this is a very small capitalization. But fundamental changes are happening here very, very slowly due to the fact that medical devices are a very conservative market, where it takes years for surgeons to move from the old to the new. Technological structures in surgery:
- Open surgery
- Digital Laparoscopy – Senhance (Transenterix)
- Robot-assisted surgery – Da vinci (Intuitive surgical)
In December 2020, the Federal Service for Surveillance in Healthcare (Roszdravnadzor) issued an unlimited registration certificate to the Senhance robot surgeon, developed by the Italian company TransEnterix.
The Senhance model became the second robotic surgeon (after Da Vinci from the American Intuitive Surgical). At the same time, the company is expected to promote Senhance in Russia and the CIS. “BOVA Eurasia” (“daughter” of the German BOWA-electronic)…
One Senhance system has already been installed in Kazakhstan, the Republic of Belarus and Ukraine.
The most advanced marketing Senhance in Kiev.
My position:buy stocks and bullish CALL spreads on options