How da Vinci Surgical Systems’ Units Sold Impact Our Price Estimate For Intuitive Surgical?

-11.23%
Downside
400
Market
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Trefis
ISRG: Intuitive Surgical logo
ISRG
Intuitive Surgical

Intuitive Surgical‘s (NYSE:ISRG) da Vinci Surgical Systems are computer-assisted systems that help surgeons perform minimally invasive surgery by controlling the device sitting at a console. With the help of this system, human error during surgeries can be minimized. Since the surgeries are minimally invasive in nature, the device helps reduce surgical complications and makes the post-operative recovery process simpler and quicker. The advantages associated with minimally invasive surgery are likely to lure more patients to opt for such procedures over traditional open surgery. Additionally, we expect the ease and benefits to surgeons to drive demand for these devices.

Intuitive Surgical sold 492 da Vinci surgical systems in 2015, and we expect that figure to reach 760 units by the end of the our forecast period. However, at present, these systems are expensive compared to traditional surgical instruments, and intensive training is required to master the technology. These factors somewhat work against the growth of unit sales. If Intuitive Surgical is only able to sell 500 units annually by the end of our forecast period, there could be more than 10% downside to our current price estimate. On the other hand, if the company manages to sell 900 units, there could be approximately 10% upside to our current price estimate.