Intuitive Surgical, Inc. (NASDAQ:ISRG) has signed a licensing agreement with mini-laparoscopic surgical instruments company JustRight Surgical. The terms of the agreement provide the global technology leader in robotic-assisted surgery exclusive access to JustRight’s Intellectual property in energy-based vessel and sealing and tissue stapling technologies.
The two companies have also agreed to work on a joint product development as part of the agreement signed. In addition, the two have entered into an equity financing agreement. The partnership expands Intuitive Surgical footprint into a global Laparoscopic instruments market that is poised to reach highs of $11.68 billion by 2021.
JustRight Surgical boasts of a power vessel sealing technology that permanently fuses vessels using low energy. The technology is a major advance when it comes to invasive surgical operations.
“Our Low Power Vessel Sealing technology and Mini Mechanical Stapler combined with Intuitive Surgical minimally invasive expertise will now have the potential to improve safety and outcomes for adult-sized patients undergoing robotic surgery,” said JustRight CEO, Robert Kline.
The chief executive officer expects the collaboration to bolster JustRight’s mission that seeks to enable safer and more precise laparoscopic surgery through surgical technologies and instruments.
Stellar Q2 Earnings
Separately, Intuitive Surgical reported better than expected Q2 results that topped analyst’s expectations. Earnings per share came in at $5.05 a share against consensus estimates of $4.86 a share. Revenue in the quarter was up by $12.8% to $756.2 million. The company attributes the increase to growth in recurring, instrument, and accessory and systems revenue.
Intuitive Surgical continued to experience solid numbers thanks to rising customer adoption procedures as well as growth in system placements. Worldwide, da Vinci procedure grew by 16% year over year. The company expects procedure growth of between 14-15% for the current quarter up from an initial guidance of 12-14%.
However, Intuitive has warned that selling prices could moderate given the ongoing push for sales in cost-sensitive markets. The company has hinted at the possibility of offering discounts for multiple unit deals as a way of accelerating sales.
Intuitive Surgical was up by 0.97% in Wednesday’s trading session to end the day at $943.45 a share.