3D Systems to Boost Robotic Surgery with Collaborations
3D Systems DDD recently partnered with two major healthcare companies, namely, Intuitive Surgical ISRG and Fundamentals of Robotic Gynecologic Surgery (“FRGS”) group, to expand its Simbionix training product line for women. This move is expected to improve the company’s contribution toward robotic surgical routines, thereby strengthening its competitive position in the healthcare market.
By collaborating with Intuitive Surgical, 3D Systems aims to develop a unique training module for simulation-based hysterectomy, helped by the former’s proprietary robotic manipulator-enabled surgical system “da Vinci Xi”. This will allow medical professionals to obtain hands-on training of an entire surgical procedure, thus enhancing patients’ safety.
On the other hand, the company’s partnership with FRGS group is intended to develop a Hysterectomy Procedural Tasks training module for boosting the latter’s education and training curriculum. Powered by 3D Systems’ RobotiX Mentor, the task-based module uses a rather developed virtual reality surgical simulation-based training method, which promises significant improvement in robotic surgeries.
Ever since robotic surgeries were approved by the U.S. Food and Drug Administration in 1999, it has seen extensive adoption among medical professionals. Data from Committee on Gynecologic Practice suggests that robot-assisted surgeries are conducted in over 2,025 sites in the U.S., and the count grows at an annual rate of 25%. Currently, it is the second most common surgical procedure in the U.S., with growing demand for minimally invasive hysterectomies.
According to market research and consulting firm Markets and Markets, 3D printing medical devices is a thriving industry that is projected to grow 25.3% during 2015–2020, and will be worth $2.13 billion by 2020. Year to date, on a geographical basis, North America accounts for the highest revenues as well as market share in 3D printing, closely followed by Europe. Currently, Stratasys Ltd. SSYS is the key player in the 3D medical devices market, followed by 3D Systems, Materialise NV MTLS and Arcam.
As patients’ safety is of paramount importance in the healthcare market, medical professionals strive to develop advanced and more competent training programs. We believe 3D Systems remains well equipped to cater to these needs with its existing line of training modules including LAP and PELVIC mentors. Moreover, positive market trends and the company’s dominant position in the 3D printing industry will likely contribute to its growth, going forward.
However, hefty price tag of 3D printing techniques and scarcity of skilled professionals pose headwinds for 3D Systems’ growth momentum. At the same time, unfavorable macroeconomic factors and currency fluctuations continue to bother this Zacks Rank #4 (Sell) stock’s financials.
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