Mazor CEO Ori Hadomi not concerned with Globus competition: 5 key quotes from 2017 earnings call

Written by Laura Dyrda | February 15, 2018 | Print  |

Mazor CEO Ori Hadomi spoke on several topics during the 2017 earnings call earlier this week, including the future for both the Renaissance and Mazor X systems, according to a transcript published in Seeking Alpha. He also touched on the entrance of Globus Medical into the spinal robotics market.

 

Over the past year, Mazor has transitioned the marketing efforts for its Mazor X system to Medtronic, which made a $72 million investment in the company. In the future, the two companies plan to develop new technology together to support robotic spinal surgery efforts.

 

Here are five key quotes from Mr. Hadomi during the conference call:

 

1. Switching the focus of Renaissance systems: "With Medtronic now being fully responsible for marketing the Mazor X, our sales effort is focused on the Renaissance. As a reminder, our primary focus for the Renaissance is the ambulatory surgery center, or ASCs, a market segment that we believe will take advantage of the system's value pricing."

 

2. Outlook on the ASC market: "In the U.S., we believe there are approximately 1,000 ASCs that would benefit from using the Renaissance system. At the same time, we don't believe this will cannibalize any Mazor X system sales due to the case volume and system costs."

 

3. Conversation around robotics: "Already and due in large part of Mazor's effort, the question regarding robotic had shifted from 'do I need a robot' to 'how can robotics do more for me?'…Our advanced technology team will continue breaking new grounds in robotic surgeries. We have only scratched the surface of the spine market."

 

4. Competition with Globus Medical's new spinal robotic system: "Right now Globus is making the first steps in selling their systems. It will have an impact on the sales cycle. There's no doubt about it. I think that surgeons would like to compare and to benchmark within the two systems and they will take their time. So, I have no doubt that it will have an impact on the sales cycle…I'm not concerned with this competition."

 

5. On the future: "2018 is expected to be a year of transition and our performance is expected to be driven primarily by increased revenue from the expanding installed base. Long-term, we would anticipate the installed base to expand considerably during the length of the global distribution agreement. Over the next five years, the largest result is a cumulative purchase of hundreds of Mazor X systems, which are expected to significantly accelerate procedure volume and growth."

 

More articles on spine surgery:
8 things for spine surgeons to know for Thursday
15 things to know about the spine market
3 ways residents affect outcomes for posterior cervical fusion

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