Mazor Robotics sells 11 Renaissance system in Q2 2016
7 July, 2016
The Israeli med-tech company closes it second best quarter. 3 of 11 sales were to Chinese customers. This Mai, the company signed a promising agreemnet with med-tech giant Medtronic
Mazor Robotics, a Cesarea. Israel based med-tech Company developing robotic assistance systems for spine and brain procedures, sold 11 of its Renaissance system in Q2 2016, compared to 5 system sold in the previous quarter. 6 of the systems were sold to U.S customers – including two systems for brain procedures. 5 systems were sold to customers outside the U.S through Mazor’s distributors, three of which were sold to China, one to Italy and one to Australia. Until now, Mazor has deployed 122 of its systems around the world, including 74 in the U.S, the company’s main growth market.
“The continued interest in the Renaissance system and the solid execution of our growth strategies reaffirm my view that 2016 will be a year of significant growth for Mazor,” commented Ori Hadomi, Chief Executive Officer. “We received purchase orders for eleven Renaissance systems during the second quarter – the second highest amount in our history. Three of these systems in the U.S. were installed at HCA-affiliated hospitals. We are encouraged in our strengthening relationship with this hospital company and look forward to serving more of the hospitals in the chain. Internationally, we received purchase orders for five systems in Europe and Asia, including an order for three systems in China. I remain encouraged about our prospects in China and reaffirm our long-term positive view on the market opportunity for Renaissance in this fast growing market.” Mazor’s stock has reacted very positively to the report, surging by more than 5% yesterday.
Harnessing technology to aid surgeons
Mazor develops and manufactures robotic guidance systems for spinal and brain surgery. Its flagship product is the Renaissance guidance system. According to Mazor’s data, the use of the system increases implant placement accuracy. Success rates of spinal surgery performed with the system are 98.3%, while traditional surgery success rates are 90.3%.
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.
A breakthrough agreement with Medtronic
This Mai, Mazor signed an agreement with global med-tech giant Medtronic. The global agreed to purchase 15 of Mazor’s Renaissance robot-assisted spinal guidance systems as well as investing $11.9 million in the Israeli company in exchange for 4% of its shares. The agreement between Mazor and Medtronic has three phases. If the first phase in considered successful – Medtronic may buy another 6% of Mazor’s outstanding shares. In the third and final phase of the agreement, the Medical Devices giant Medtronic could buy another 5% of the Israeli company and will assume exclusive global sales and distribution rights for Mazor’s future spine products.
A close strategic cooperation with a global player such as Medtronic, a company with a market cap of about $113 billion, is a major breakthrough for Mazor. If the first phase proves successful, Mazor could very well become a major name in the med-tech supply field, increasing sales and revenues. Only last week, Mazor reported an operational loss of $5.2 in Q1 2016. The company’s increasing revenues were offset by high development costs, which seem now to bear fruit.
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