Intuitive Surgical (NASDAQ:ISRG) operates under a variation of the razor-and-blades business model: Its first focus is getting customers to buy the razor, then it generates recurring revenue by selling them the required blades. In this case, the "razor" is Intuitive's da Vinci surgical system, and the "blades" are the instruments and accessories that are designed to perform various surgical procedures. Now, Intuitive has just announced a new blade: It recently received clearance from the Food and Drug Administration for a new instrument for surgical stapling. In this video, Motley Fool health care analyst Brenton Flynn tells us why this is a great complement to the company's portfolio of products, how this will impact the company, and who some of its competitors are from here forward.
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