Intuitive Surgical

Performance indicators

2021: Revenue - $5.71 billion, profit - $1.73 billion

At the end of 2021, Intuitive Surgical's revenue reached $5.71 billion, in 2020 the figure was $4.36 billion. The company's profit for the year amounted to $1.73 billion, while in 2020 the figure was $1.07 billion.

Of these indicators, revenue from robot surgeons amounted to $1.7 billion, tools and accessories for them accounted for $3,100 billion, for service - $916.2 million. In 2020, the figures were $1.18 billion (robotic surgical systems), $2.45 billion (tools and accessories) and $723.8 million (service), respectively.

In 2021, the manufacturer of robot surgeons da Vinci increased sales by 31%

Revenue from sales of robot surgeons in 2021 reached $1.86 billion, which is 33% more than in 2020 - $1.4 billion. According to the results of 2021, the sale of tools and accessories for surgical robots reached 875.4 million, which is 31% more than in 2020 - $670.6 million. The service line brought Intuitive Surgical revenues of $312.9 million against $241.2 million in 2020, an increase of 30%.

Deliveries of robot surgeons in 2021 amounted to 482, of which Dual Console X systems - 126 pieces, Single Console X - 9 pieces, Dual Console Xi - 89 pieces, Single Console Xi -252 pieces, SP - 6. In 2020, the Dual Console X was delivered - 89 pieces, the Single Console X - 5 pieces, the Dual Console Xi - 58 pieces, the Single Console Xi -180 pieces, SP - 4.

In 2020, the COVID-19 pandemic significantly affected the sales volumes of da Vinci robot surgeons, as health systems around the world focused on capabilities to respond to COVID-19. During 2021, repeated outbreaks of COVID-19 continued to affect the supply volumes of surgical systems. The impact of the COVID-19 pandemic on the company's business has been and continues to vary depending on geographical location and region.^[1]

History

2021

Investing $500 million in office expansion

In early August 2021, Intuitive Surgical will spend more than $500 million to expand its campus in Peachtree Corners, northeast of Atlanta.

The robotic surgical system company from Sunnyvale, California is one of the favorites in this area and has been present in Georgia for 10 years. It is planned to expand the campus in Peachtree Corners to 70 thousand square meters. m., where various production and engineering facilities, training centers for surgeons and hospital teams, as well as administrative offices for employees will be located.

Robot surgeon manufacturer Intuitive Surgical invests $500 million in office expansion

The expansion will take place in stages and with final completion in 2024. Intuitive Surgical plans to create 1,200 jobs in addition to the 180 professionals who already work at Peachtree Corners.

One of the company's robotic systems can cost $2 million or more. According to Intuitive Surgical, surgeons around the world used the company's robots to conduct more than 1.2 million procedures in 2020. Its most famous product is the da Vinci surgical system.

To meet the growing demand for Intuitive Surgical's minimally invasive surgical technologies, we need highly educated, dedicated personnel, quality infrastructure and the right geographical location. And all this we found here, and we are happy to continue to grow in the state. We are committed to hiring a diverse and inclusive workforce as our presence in Georgia expands, said Intuitive CEO Gary Guthart.

Kemp noted the state's advanced medical environment, dynamic labor, business support policies, and a thriving economy.

California continues to attract world-renowned companies like Intuitive Surgical and this huge investment in a new campus in Peachtree Corners will benefit hundreds of hardworking Georgia residents across Atlanta.^[2]

Legal action for imposing the purchase of new parts and banning the maintenance of equipment by third-party contractors

In mid-July 2021, several hospitals began legal proceedings against Intuitive Surgical. The authors of the complaint claim that the monopoly position of the medical equipment manufacturer forces clinics to buy maintenance services and spare parts at inflated prices, despite the existence of cheaper options on the market.

In one of the statements, the hospital claims that the Hospitals sued the robot manufacturer da Vinci for imposing the purchase of new parts and banning the maintenance of equipment by third-party contractors remotely turned off the surgical robot of the hospital in the middle of the operation, which forced the surgeon to transfer the procedure to manual mode and work with the patient himself, after the hospital stated. Hospital management associates this action with their recent statement that the hospital is considering a third-party service contract.

Hospitals sued Intuitive Surgical for imposing the purchase of new parts and banning the maintenance of equipment by third-party contractors

Intuitive Surgical produces the da Vinci surgical robot and sells it to hospitals at a price of $500 thousand to $2.5 million per 1 unit.

But most of Intuitive Surgical's annual revenue of $4 billion comes from related tools, accessories and maintenance contracts that are needed to keep robots operational. Companies Franciscan Health, Valley Medical Center and Kaleida Health filed class action lawsuits that say Intuitive Surgical has a monopoly on minimally invasive surgical robots (the system includes the highest motion control technologies, so that each movement provides smooth and accurate movements resembling those of an experienced surgeon, even at slow design speeds), which gives the company almost complete dominance in the market of all the parts and services that robots need after buying by hospitals.

One of the lawsuits alleges that hospitals cannot maintain their da Vinci robots from third parties, since Intuitive Surgical forces hospitals to sign multi-year exclusive service agreements at prices that are much higher than those of other suppliers.

Hospitals also claim that Intuitive Surgical forces them to buy new expensive tools and nozzles for their robots (the so-called EndoWrists) after 10 uses, even if the parts are in good working condition.

Intuitive Surgical has been facing antitrust lawsuits from third-party repair and service companies since the beginning of 2019, but this lawsuit is already from the hospitals themselves. A representative of Intuitive Surgical said that they would not yet comment on these claims.

By July 20, 2021, Intuitive Surgical has a market value of $113 billion - more than companies such as CVS Health or Lockheed Martin, and its executives are among the highest paid in the health sector.^[3][4]

2020

Sales drop due to the COIVD-19 pandemic

Intuitive Surgical completed 2020 with revenue of $4.36 billion, which is slightly less than a year ago, equal to $4.48 billion.

Revenue from sales of robot surgeons decreased - from $1.35 billion in 2019 to $1.18 billion a year later. The sale of tools and accessories for this equipment also decreased, albeit slightly - from $2.41 billion to $2.46 billion. The service direction brought the manufacturer revenues in the amount of $723.8 million against $724.2 million in 2019.

In addition to sales, Intuitive Surgical also had a decrease in net profit. In 2020, it amounted to $1.07 billion, while in 2019 it amounted to $1.38 billion.

Intuitive Surgical sales in 2020 show fall due to pandemic

The company linked its financial decline to the COVID-19 pandemic, due to which the number of operations carried out using da Vinci robotic surgical systems decreased significantly, as many hospitals switched treatment to patients with coronavirus. By the end of 2020, in the United States, the number of operations carried out with the participation of these robot surgeons has almost returned to a pandemic level, according to the financial statements of Intuitive Surgical.

Deliveries of da Vinci to the American market in 2020 amounted to 600 units, which is 18% less than a year earlier. In Europe, shipments of this medical equipment decreased by 20%, to 136 units. In Asia, the decline rate was slightly lower (-14%), and sales - 157 units. The remaining countries combined received 43 systems, which is 8% higher than a year ago.

The average cost of a da Vinci robot surgeon sold in 2020 was $1.5 million against $1.52 million a year earlier. By December 31, there were 5989 installed systems in the world (+ 7% by the end of 2019^[5]

Launch of $100 million Intuitive Ventures Venture Fund

At the end of October 2020, Intuitive Surgical, the manufacturer of surgical robots Vinci, announced the opening of the first $100 million investment fund called Intuitive Ventures. According to the company's management, the new venture fund will consider investment opportunities related to digital tools, precision diagnostics, focus therapy and platform technologies. More details here.

Purchase of Orpheus Medical startup

In mid-February 2020, Intuitive Surgical announced the acquisition of the startup Orpheus Medical. The financial terms of the transaction were not disclosed. More details here.

2019

The average price of a robot surgeon reached $1.52 million

In 2019, Intuitive Surgical raised $4.48 billion against $3.72 billion a year earlier. On sales of new robot surgeons, the company earned $1.35 billion, while in 2018 the figure was $1.13 billion.

Deliveries of tools and accessories for medical equipment brought the manufacturer most of the revenue - $2.41 billion against $1.96 billion a year earlier. The volume of services rendered in 2019 was measured at $724.2 million, increasing relative to income in 2018 ($635.1 million).

Financial performance of Intuitive Surgical

The United States remains the largest market for Intuitive Surgical, although this country generates less revenue from year to year. In 2019, the company's revenue in the American market amounted to $3.13 billion against $2.63 billion a year earlier. The share of the United States in the total turnover of the company fell from 71% in 2018 to 70% a year later. In 2017, the share was 73%.

In 2019, Intuitive Surgical made a net profit of $1.38 billion - this is more than the previous year's profit of $1.13 billion.

By the end of 2019, the number of da Vinci robotic systems used around the world reached 5582, which is 12% more compared to the same period in 2018, when the number was 4986.

In 2019, the company delivered 1119 da Vinci systems against 926 units a year earlier. In the United States, equipment deliveries increased from 581 to 728 units, and in all countries combined - from 345 to 391.

It also follows from the report that in 2019, Intuitive Surgical delivered 425 robot surgeons to customers under leasing agreements and 272 used devices. The average sales value of one da Vinci device in 2019 reached $1.52 million, increasing compared to a year ago in $1.45 million.

The company completed 2019 with a cash reserve of $5.8 billion. This includes cash and investment equivalents.^[6]

Purchase of Scholly Fiberoptic robotic endoscope business

On July 15, 2019, Intuitive Surgical announced the acquisition of the robotic endoscope business Scholly Fiberoptic. More details here.

2018:1 million operations of a da Vinci robot surgeon

In 2018, Intuitive Surgical's revenue amounted to $3.72 billion against $3.14 billion a year earlier. The company's revenues increase due to growing demand for. robot surgeons da Vinci

By the end of 2018, a total of 6 million operations using da Vinci were performed worldwide. In 2018 alone, their number exceeded 1 million, which is 18% more than the previous year. On average, every 36 seconds, one operation begins in which doctors use this robotic system.

Intuitive Surgical Revenue Change

According to the results of 2018, the company's revenue from the sale of robot surgeons themselves amounted to $1.13 billion, while in 2017 it was measured at $928.4 million. Sales of tools and accessories exceeded $1.96 billion, increasing from $1.64 billion in 2017. Finally, the service business provided Intuitive Surgical with a turnover of $635.1 million, which is also more than a year ago ($572.9 million).

As of December 31, 2018, about 900 da Vinci devices were installed in medical institutions, which is 35% more than a year earlier. Most systems (approximately 600) operate in the United States.

Among the operations that were carried out with da Vinci in 2018, most came from general surgery. The second place in the number of operations was taken by the gynecological region, the third - urological.

In 2018, Intuitive Surgical received $1.13 billion in net profit, which is more than one and a half times the result of a year ago. At the same time, the company's expenses increased from $1.14 billion to $1.4 billion, as the manufacturer is actively investing in the research, development and sale of its equipment.

The high costs of Intuitive Surgical are due to the increasing competition in the market of robot surgeons. So, by the beginning of 2019, Medtronic is working on such a system, J&J is collaborating with Alphabet within the framework of the Verb Surgical enterprise, and there are rumors about the sale of Auris Health (a direct competitor to Intuitive Surgical) to J &^[7]

2017: Revenue growth to $3.1 billion

In 2017, Intuitive Surgical increased revenue by 16%. Progress was facilitated by an increase in the number of procedures performed with the help of robotic surgical systems da Vinci, sales of the devices themselves, tools and accessories for them.

As follows from the company's annual report, Intuitive Surgical's revenue rose from $2.7 billion in 2016 to $3.1 billion in 2017. Also, the manufacturer of robot surgeons reported a net profit of $660 million against $735.9 million a year earlier.

Financial performance of Intuitive Surgical

According to the results of the 12-month period that expired on December 31, 2017, 877 thousand procedures were performed using da Vinci surgical systems, which is about 16% more than in the previous year, when the number of operations with the help of Interactive Surgical robots amounted to 753 thousand. Most of the operations were carried out in the United States - 644 thousand, and in other countries - 233.

More than half of the annual revenue, or rather $1.6 billion, the company earned on the sale of tools and accessories for its equipment. Compared to the 2016 figure of $1.4 billion, revenue increased by 17%.

Revenue from the sale of robot surgeons increased by 15%, to $910.2 million. In 2017, Intuitive Surgical delivered a total of 684 da Vinci systems, improving the previous year's result in 537 systems by more than a quarter.

Introduction of da Vinci robot surgeons in different regions

Services brought Intuitive Surgical $581.8 million against $517 million in 2016.

The company also reported that as of December 31, 2017, approximately 4409 da Vinci surgical systems were installed worldwide. Most of the robot surgeons - 2862 - are used in the United States, 742 - work in Europe, and 579 - in Asian countries.^[8]

The United States remains the largest market for Intuitive Surgical products. In 2017, this country accounted for 73% of all revenue, compared to 72% in 2016. Outside the United States, the company earned $849.1 million or 27% of total revenue.^[9]

2016: 25% Profit Growth

In 2016, Intuitive Surgical revenue increased by 13%, and net profit - by 25%. Most of the sales of robot surgeons of the company fell on the American market.

At the end of 2016, Intuitive Surgical's revenue amounted to $2.7 billion against $2.4 billion a year earlier. It is worth noting that in 2014, sales of the company fell to $2.1 billion from $2.3 billion in 2013.

Intuitive Surgical's net profit amounted to $735.9 million in 2016, compared to $588.8 million in 2015. In 2014, the company's profit fell to $418.8 million from $671 million.

Da Vinci Robot Surgeon

Most of the annual revenue (81%) of Intuitive Surgical was occupied by sales of medical equipment. The remaining share fell on services, including technical support services, the revenues from which were measured at $517 million.

Intuitive Surgical still earns the most in the United States. Moreover, the country's share in the company's turnover increased - from 70% in 2014 to 72% in 2016. The fact that the American market brings the lion's share of revenue was associated with the development of innovation and minimally invasive surgery in the country, as well as the fact that the initial investment of the vendor was focused on the US market.

In 2016, Intuitive Surgical delivered 537 da Vinci robotic systems to medical facilities against 492 units a year earlier. Most of the shipments were taken by the da Vinci Xi model with a single console: its annual release exceeded 300 copies.

The American market received 338 da Vinci systems, 96 in Asia, 79 in Europe. Data on Russia are not given, but it is known that da Vinci surgeons have long been used in some Russian hospitals.

At the end of 2016, Intuitive Surgical earned about $1.4 billion on the sale of tools and accessories for its systems, which is 17% more than a year ago.^[10]

Notes