Meanwhile, ProHealth Care has looked to expand clinical capabilities and has invested in orthopedic technologies that have set them apart from the competition, both regionally and nationally, Robertstad said.
“We really wanted to go after the orthopedic market,” Robertstad said. “Our orthopedic physicians were really excited about this technology and were adamant about us being early adopters for the benefit of our patients.”
The new procedure, called MAKOplasty, is a minimally invasive surgical procedure that uses the precision of robotics to perform partial knee resurfacing surgery. The technology results in shorter hospital stays and faster healing than traditional knee surgeries, Robertstad said.
According to Robertstad, Oconomowoc Memorial was the first hospital in Wisconsin to adopt the technology and only the 12th in the nation to do so.
“As a result, we’re having patients not only from around the state of Wisconsin come to our facility for such procedures. We’re getting people from Chicago, northern Illinois, Minnesota and even as far away as California come to have it done,” Robertstad said. The number of procedures and patients taking advantage of the new technology at Oconomowoc Memorial continues to grow significantly. “The last couple of years it has really been an emphasis of ours,” he added. “We continue to focus on our patient satisfaction,” Robertstad said.
this is my favorite growth metric. each 15,000 procedures add about $1 to eps. 15,000 procedures x $5,000 = $75 million sales x 75% gross margins = $56 million net margin pre tax .. less tax 30% = $40 million net after tax .. 40 million shares.. $1 eps. so when i think we may be early.. it is because the knee-hip is more then 1 million proceudres a year, and if MAKO does multiples of 15,000 a year, well the eps would be extra large. They might do 150,000 procedures = $10 eps. For example I did a calculation for Chipotle Mexican Grill, each 100 units using this formula raises eps $1, and analyst think Chipotle might have 4,000 units USA. This would somewhat explain the $390 stock price.
100% confident? No. 80% yes. It could well be the *coveted* standard of care. I'm in this stock with a healthy regard for the risk/reward with the reward being extremely high. Market penetration is the key and it'll take time but as it continues to ramp so will the share price. Standard of care takes TIME. MAKO's CEO, Maurice Ferre' made image guided surgery the "standard of care" with his first company which he eventually sold to GE. He's learned lessons in other companies and, with the guidance of two of ISRG's co-Founders, should deliver stellar results to us shareholders over the years.
"We see something similar at work with MAKO Surgical. Patients typically are back on their feet in a day and doing normal activities within a few weeks. While the early stage of the business means there’s a lot of risk to this investment, we’ve seen impressive growth of the installed base and healthy utilization of the robots already out in the field. At the end of the third quarter, 97 RIO systems were in use. More than 10,000 MAKOplasties have been performed since the end of 2007, and 1,813 of them were performed in the third quarter alone — a fast acceleration as orthopedic thought leaders adopt the procedure and patients begin to catch on. Management estimates they already have captured close to 10% of the market for single-compartment knee resurfacing procedures, and the RIO now is starting to be used for more complex two-compartment procedures. Yet the market is understated, because many people with osteoarthritis don’t seek treatment, having been told their only option is total knee replacement. Orthopedists anecdotally report that they are seeing their business grow as they use the RIO because patients who once were on the sidelines finally seek out care. That’s a path for MAKO to address a sizable number of the estimated 15 million Americans with knee osteoarthritis. Where it goes is hard to predict. Even 1% of that total would be 150,000 procedures. At current rates of utilization, that would require about 1,875 RIO systems. Combine that revenue with the roughly $5,000 in implants used with each procedure, and MAKO could be banking huge profits several years down the road...." Source: http://www.investorplace.com/2011/12/mako-surgical-stock-joint-replacement/
Some good studies on the Mako website on that subject, generally just an overnight stay and a few weeks of rehab and light activity before able to do the more vigorous sporting activities, etc. Some patients go home the same day as MAKO is being used in more ambulatory surgery centers. Can really only compare to TKA and of course Makoplasty PKA will beat that recovery every time. This video of one patient's journey from pre-op planning to post-op offers some clues of the benefits: http://wn.com/lester_makoplasty_patient