1 Key Area to Watch in Robotic Surgery

Brenton Flynn
Brenton Flynn
Sep 19, 2012 at 12:00AM

The razor-and-blades business models of Intuitive Surgical and MAKO Surgical have some features we love here at The Motley Fool. One of those is the high-margin recurring revenue generated from existing system installations. For both companies, that comes in the form of ongoing service contracts and accessory sales -- implants for MAKO, instruments for Intuitive -- driven by the number of procedures being performed. This is why system utilization is another key metric that investors should follow, and one driving force behind utilization is expansion into new procedural areas.

In the following video, Brenton discusses some new procedures that these companies are targeting, including a recent gaffe from an Intuitive Surgical representative related to its new gall bladder procedure.

The recent market sell-off of MAKO Surgical shares has many wondering whether the potential growth prospects of the robotic surgery company make it a buy today or a stock to stay away from. Read our premium report to read up on the details of MAKO's story. Click here to access it now.