Ratman

6 Medical Device Makers Poised for Growth

Thomas, in your response to Phil, you have your companies mixed up. It is Hansen that trails Stereotaxis in approvals, systems placed, procedures, safety, efficacy and efficiency. (This is all without the Irrigated Catheter being available for STXS)

You mention Dr. Moll and his leadership, which is undeniable that he was a part of ISRG and he has a very impressive resume in robotics. Problem is in the EP lab, names like Pappone, Kuck, Haissaguerre, Natale and even Burkhardt all carry more more weight and prestige than his.

Pappone, Kuck and Haisaguerre have all made there choice, they all have labs containing a Stereotaxis Niobe. Natale, who has done a lot of the early work for Hansen getting its approval stated at the ACC his opinion on the Sensei's safety record which was less than stellar and it sounded like he was giving a recommendation not to use sensei unless you are one of the most skilled docs in the world.

As to profitability, at what margin and utilization rate does Hansen get to profitability? Giving away the razor in order to increase the usage of the blades is one thing when the razor only costs a couple dollars. But in a Medical equipment sector where game changing technologies sell at gross margins 50-60+ percent why is hansen only selling senseis for 20% tops. (Which is a guess since they lumped all revenue and COGS together, the assumption is the artisan sheath sells for GM closer to 70%, which would put the overall system GM closer to 10.)

So now that you have given away the Sensei, you need the sites to use them. The Cleveland Clinic, is the setting of a DB research note that states although on a CC Fred Moll said they were using the Sensei exclusively, it turns out the opposite is the case and that Cleveland Clinic may be in the market to add 2 additional Niobes. It is hard to be profitable if the device you gave to them for cost, is not being used.