Industry Titans: With the huge success of ISRG, a market for assisted surgery systems that guide surgeons are not only safer, but they are also extremely profitable. Intuitive has been posting consistent double digit EPS for the past few years with a growth trajectory pushing them toward $20 EPS. The disruptive growth player has created a new market in which they have capitalized handsomely. Minimally invasive da Vinci systems are expensive opening up room for competition in many areas of specialization. For instance, NuVasive (NASDAQ:NUVA) has found a niche in spine surgery and consistently posts a profit selling nerve detection and avoidance software along with biologics for spinal fusion. Their end to end solution makes them a strong candidate to take market share from the market leader.
Specs: To lead off, I am presenting a specialized vascular robotic systems manufacturer Corinidus Vascular (NYSEMKT:CVRS).This long shot loses about $25M a year as of 2014, however they have successfully raised short term capital and consistently trade at a highly valued MKT Cap to Current Asset ratio (3x even near 52wk low). With a new CEO from Boston Scientific (NYSE:BSX) and an additional board member from JnJ (NYSE:JNJ), Corindus could see some long term upside if they focus on the expansion of their precision stent placement technology. They already have FDA approval for their CorPath system and simply need to generate enough demand for it that hospitals see value in buying one. For this company, March 8th earnings will show where they're headed next. Venture capital leader HealthCor Partners owns over 100M shares of Corindus.
Israeli's always invent the future and this next spec has been hammered since its 2014 high and has only sold about 100 robotic guidance systems since their inception. Mazor Robotics (NASDAQ:MZOR) trades on the Nasdaq and Tel Aviv SE. The company specializes in orthopaedic and neurosurgeries. Their lone product is the Renaissance Guidance System which they are developing applications for called the PROlat update. Lastly, Zack's research has a buy rating on Mazor at over a $200M valuation. Also, as of Dec. 31st 2015 George Soros's fund owned almost 2.5% of the company. With the company being Israeli, it only seems right that the largest holder of the 20M outstanding shares is Larry Feinberg's Oracle Investment Management whic holds over a 10% stake in the venture.
Disclosure: I am/we are long NUVA, CVRS, MZOR.