Mazor Robotics Ltd. (TASE:MZOR) has obtained US Food and Drug Administration (FDA) and EU CE Mark certification for its Renaissance product, the next-generation version of its robotic spinal surgical device, SpineAssist.
The launch of the Renaissance is part of Mazor’s marketing strategy. The company has sharply raised the price of the SpineAssist in the past year, positioning it as a premium product that not only offers a quick return on investment, but also brings in new patients to hospitals with the device. Intuitive Surgical Inc. (Nasdaq: ISRG), which markets its da Vinci surgical system, a robotically assisted minimally invasive surgery device, has employed a similar marketing strategy.
The Renaissance device could help Mazor support the higher price for its product and improve its positioning against competing procedures. The Renaissance is also designed to support robot-assisted brain procedures, for which the company has already obtained CE Mark certification. Since the Renaissance can support both spinal and brain procedures, Mazor will easily be able to ask a premium price for the device. The SpineAssist is current priced at $500,000 each.
The change in marketing strategy boosted Mazor’s turnover in 2010. First quarter 2011 revenue rose to NIS 6.4 million from NIS 590,000 for the corresponding quarter of 2010, and net loss narrowed to NIS 5.6 million from NIS 6.6 million.
Mazor recently obtained marketing approval for new permanent spinal implants.
Mazor’s share price rose 5.5% today to NIS 8.50, after an initial gain of 9%, giving a market cap of NIS 179 million.
Published by Globes [online], Israel business news – www.globes-online.com – on June 6, 2011