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.
Brenton Flynn has no positions in the stocks mentioned above. The Motley Fool owns shares of Intuitive Surgical and Johnson & Johnson. Motley Fool newsletter services recommend Covidien Ltd., Intuitive Surgical, and Johnson & Johnson. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.