US Drive Mazor Robotics surgery robots sales

17 May, 2016

The company has reporter a 42% increase in revenues, but rising expenditures lead to a $5.2 million net loss

The company has reporter a 42% increase in revenues, but rising expenditures lead to a $5.2 million net loss

MAZOR

Even though the Israeli robotics company reported an impressive 42% increase in revenues, Q1 2016 enden with a $5.2 million operational loss, due to rising marketing and development expenditures. The company’s stock traded lower in the days following the slightly disappointing report.

1
azor Robotics Renaissance® Guidance System

Mazor Robotics generated revenue of $6.4 million for the first quarter of this year, compared to $5.4 million in the same quarter last year. Nevertheless, the increase in revenues was accompanied by a steep increase in expenditures, from $8.5 million last year to over $10 this year. The company has reported an o

perational loss of $5.2 million in Q1 2016 compared to a $5.1 last year. Mazor Robotics executives noted that the rise in operational costs stems from growing investment in development and marketing.

Mazor’s CEO Ori Hadomi commented that “Our results reflect the positive trends we are experiencing in each of our priority areas –As we progress through the year, our team is highly confident about our ability to maintain this momentum and demonstrate growth in 2016.”

Mazor robotics develops and manufactures robotic guidance system for spine, and as of late brain surgery. Mazor’s flagship product is its Renaissance system. The use of the robotic guidance system increases the accuracy of spinal implant placement. According to the company’s publications, the successes rate in robotic guided surgeries is 98.3% compared to 90.3% in traditional surgeries.

The system can be used for the treatment of many spinal conditions including degenerative spinal conditions, spine tumors and spinal deformities. The system takes two fluoroscopic images, matching their corresponding location to the pre-operative CT, thus assisting the surgeon in planning and preforming a less intrusive, more accurate surgery. In April 2014 Mazor launched a special model of the Renaissance system for use in Brain surgery.

Increasing popularity in the US market

During the passing quarter, Mazor has sold 5 Renaissance systems – 4 for spinal surgery and one for brain surgery. One spinal surgery system was deployed in the Robert Wood Johnson medical center in New York, a clear indication of the company’s achievement in penetrating the important American market. 87.5% of Mazor’s sales are in the US market, making it the company’s strategic focus.

The the US medical market generated revenues of $5.6 in Q1 2016, compared to 2.7 million in Q1 2015.  Recurring revenue from system kit sales, services and other increased to $3.8 million in the first quarter of 2016, representing a 41% increase compared to $2.7 million in the first quarter of 2015, mainly attributed to increased utilization of the Renaissance systems “as we approach 17,000 cases performed and with the promising results from our ongoing clinical studies supporting the benefits of the Renaissance system, I firmly believe Mazor’s robotic system will be the standard of care for spine surgeries. As we progress through the year, our team is highly confident about our ability to maintain this momentum and demonstrate growth in 2016.” Said Hadomi.

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Posted in: Medical , News

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