The case in point being Mazor Robotics Ltd (ADR) (NASDAQ: MZOR). It is an Israeli medical device company and manufacturer of a robotic guidance system for spine surgery.
Today’s stock represents one of our favourite investment strategies of selecting growth stocks. Such companies have innovative and specialized products catering to a rising technology trend. Their businesses are at an inflection point and investors can make good amount of money investing in such stocks early.
The case in point being Mazor Robotics Ltd (ADR) (NASDAQ: MZOR). It is an Israeli medical device company and manufacturer of a robotic guidance system for spine surgery. It develops innovative medical devices that support surgical procedures in the field of orthopedics and neurosurgery.
The company is leading and innovating global spine and brain surgery with products like ‘Mazor X’ and ‘Renaissance’ guidance system. The company’s mission is to develop and introduce revolutionary robotic-based technology and products with the objective of redefining quality care. And the way Mazor Robotics stock has been gaining over the past few years, it appears that the company is doing just that.
Mazor’s products for the spine surgical markets provide a safer surgical environment for patients, surgeons as well as operating room staff. Mazor operates in the field of computer assisted surgery (CAS) which involves the use of surgical instruments with high precision and minimal invasiveness. They contribute to the safety of a wide range of surgical procedures, which have transformed significantly due to the introduction of the robotic system.
With the assistance of robotic technology, an increasing number of surgeons have been able to perform procedures that were previously limited to a small subset of highly-skilled surgeons.
The computer assisted surgery market is likely to continue going up in future given the rise of spine disorders across the world. Spine disorders are a leading driver of global healthcare costs. The key drivers in the growth of this market shall be a growing and aging population as well as rising obesity rates.
As per a research report by Research and Markets, the global surgical robotics and computer-assisted surgery market is expected to increase from $4.0 billion in 2016 to about $6.8 billion in 2021, representing a CAGR of 11.3% (Source: Medical Robotics and Computer-Assisted Surgery: The Global Market, Research and Markets, May 2017)
The company is well-positioned to gain from the growth in the segment. Its Mazor X system and Renaissance system have been used in over 24,000 spine surgeries, including fusion, correction of spinal deformities etc. As the usage of such products increases in the coming future, MZOR stock is likely to gain further.
Mazor Robotics believes that the application of robotics technologies in minimally invasive surgical procedures represents the next generation in the evolution of the surgical technique. These technologies have the potential to provide surgeons with a more precise and controlled ability to perform complex procedures.
The pioneer in surgical robotic guidance systems is about to announce its fourth quarter and full year results. It is expected that the company shall report record revenue of about $65 million for the full year and about $19 million for the fourth quarter.
This is driven by the strong quarter where the company received purchase orders for 27 robotic guidance systems. This is also the first full quarter since Medtronic teamed up with Mazor to exclusively distribute Mazor X system worldwide for spine surgeries.
The CEO Ori Hadomi stated that the fourth quarter demonstrates the smooth and successful transition of the Mazor X sales and marketing activities to Medtronic. This would lead to increased market penetration and an accelerated number of Mazor X installations during the coming years. (Source: Mazor Robotics received 27 System Orders During Q4 2017; Expects to Report Record Full Year and Quarterly Revenue, January 8, 2018)
For the third quarter, the company had more than doubled its revenue to $17.2 million. The company executed well its strategy to drive market penetration. It entered the next phase of sales agreement with its commercial partner Medtronic that handles the sales of Mazor X system.
Mazor Robotics stock has gone up by more than 450% in the last five years and almost 185% over the last one year. The following MZOR stock chart shows this phenomenal rise.
Chart courtesy of www.stockcharts.com
Mazor Robotics is a medical device company that develops and markets innovative surgical guidance systems together with complementary products. With expertise in computerized and imaging-based systems, primarily in the field of spine surgery, the company believes in healing through innovation by developing revolutionary robotic technologies.
Mazor Robotics products enable surgeons to conduct spine and brain procedures in an accurate and safe manner. Given the expected rise in spine disorders in the coming days, the company’s products are likely to be in demand and push MZOR stock higher. No matter how the stock behaves after quarterly results announcement, investors should not ignore the stock for the long term.