OEM and consummable terms of ISRG deal are avail from analyst reports and from the co. They are 2+ yrs into a 10-yr agreement with ISRG. Dont believe terms are renegotiable, but not 100% on that. Deal is certainly profitable but not hugely so on OEM side and $200-250 on kits. But the benefit of the tech being validated by ISRG, widely distributed and gaining familiarity with surgeons/hospitals is incalculable, plus ISRG will eventually have to re-up given how integral Firefly is becoming to DaVinci.
As I know you are well aware, the real income for NVDQ will hopefully come from the sale of razor blades and not the sale of the razors. There is probably a significant gross profit margin associated with the sale of those $250 kits.
regards endo and thanks for the input
farfignugen21. my thanks to you also for the good info.
I have been holding ISRG for 7 years and started a much smaller position in NVDQ about 6 weeks ago (cost basis $8.90/share). My interest was triggered by what ISRG is doing with Firefly, and after studying NVDQ for a while I pulled the trigger on a starter position. So far I am more than encouraged by how the ISRG/NVDQ joint venture appears to be panning out. The recent Corporate Presentation on the NVDQ website is certainly encouraging as well. I believe the future looks bright for this company.
As for the ISRG joint venture: while it's fair to say that the sales to ISRG are not "hugely profitable", they allow NVDQ to leverage the ever-growing ISRG sales/marketing organization. They are providing increasing volume to NVDQ manufacturing and so I surmise help to achieve economies of scale for NVDQ. Also, ISRG is bearing (or sharing?) the cost of conducting a clinical trial and filing the 510k with the FDA for the Biliary indication on Firefly, which can only help NVDQ. And as you said, Firefly's ever-increasing penetration of Robotic procedures provides invaluable exposure and credibility for the technology in all surgical platforms, which hopefully will provide a very profitable "multiplier effect".