Growth in Global Surgical Robotics Market

**SPEAKER_1** (0:02)
Bloomberg Audio Studios, podcasts, radio, news.

**SPEAKER_2** (0:08)
You're listening to Bloomberg Businessweek with Carol Massar and Tim Stenovec on Bloomberg Radio.

**Carol Massar** (0:14)
Hey, we got a few developments from the world of robotic surgery. After more than a decade of research and years of delays, J&J now has a robot on the market for soft tissue surgery. That news came out yesterday.
Meantime, Intuitive Surgical Shares, we saw them under pressure again last week, as growth in the use of its DaVinci Surgical Robot slowed to the weakest pace in four years, and its guidance for procedure growth was unchanged due to softer US growth in procedures reflected because of changes to Affordable Care Act subsidies. The company also said, I thought this was interesting. This is so cool.

**Tim Stenovec** (0:50)
I mean, so interesting, right?

**Carol Massar** (0:52)
Yeah, that US. DaVinci bariatric cases in particular experienced pressure from patient usage of GLP-1 weight loss drugs.

**Tim Stenovec** (1:01)
So fewer people are getting bariatric surgery because they're using GLPs instead.

**Carol Massar** (1:05)
That's the read-through.

**Tim Stenovec** (1:06)
Okay.

**SPEAKER_1** (1:06)
Yeah.

**Tim Stenovec** (1:07)
Curious if any of this at this point is affecting our next guest. Back with us, Dr. Sudhir Srivastava, Chairman, CEO and Founder of the U.S.-based SS Innovations International. It makes medical equipment. It develops surgical robotic technologies. It's a $683 million market cap with US shares down about 40 percent this year. He joins us from Fort Lauderdale. Good to have you on the program. I think a lot of people, when they think surgical robotics, they think about the DaVinci machine from Intuitive Surgical. How does your product at SS Innovations International differ from the DaVinci surgical robot?

**Sudhir Srivastava** (1:44)
Yes, a great starting question. First of all, thank you very much for having me.
So our SSI Mantra system is different than the DaVinci, almost at every level other than fundamentally, it is still a surgical robot. So we can go through some big comparison on the technology, open-phase console as opposed to the immersive and forward, up to five arm control from the console, large open-phase 32 inch 4K monitor. Table side team also has the same 3D view, which is safer and more efficient. And then a modular design of the robotic arms, three, four or up to five arms. And moreover, our system is equipped from the beginning both for tele-proctoring and tele-surgery.

**Tim Stenovec** (2:32)
What about from the perspective of the doctor actually using the technology and how difficult it is to train? All these doctors are used to using certain products right now. How do you train the doctors to do this?

**Sudhir Srivastava** (2:43)
Yeah, so we have gone through, of course, in India, we have sold 224 systems. Almost 13,000 cases now have been done including cardiac. So essentially what we have observed, the people who are DaVinci users, it almost takes them anything 5 to 10 minutes literally, because they're different, like driving a different car. So once they understand the controls, same principle, essentially, the controls, put controls, operating, watching the video.
People who are non-robotic surgeons, it can take them from 20 to 30 minutes to learn the machine. Then of course, they have to go through certain practice just to get used to things. Just like with DaVinci, there is a learning curve, and so there is a learning service or system for the novices.

**Carol Massar** (3:27)
And you don't sell in the US yet, correct?

**Sudhir Srivastava** (3:31)
Yeah, so we are actually in the process with US FDA. And again, our anticipation is by hopefully for the quarter of next year, we will achieve some approval from US FDA.

**Carol Massar** (3:44)
Right, I know this is some of what we talked about last year. I am curious what you hear from the investment community because as Tim mentioned, I mean, you think of Intuitive Surgical, right? They're a $117 billion market cap company, a very known name. And you did talk about the distinctions.
Do you anticipate that the US market is really your growth opportunity? Because I understand your mission is about making robotic surgery more accessible to more people and also making it more affordable.

**Sudhir Srivastava** (4:16)
Yeah, so we have actually achieved that in terms of the pricing, consumer goods and service agreements, et cetera. And outside of India, we are currently in 14 countries. So I think when you think about the growth opportunity in the US., absolutely, because our system does every single thing that Da Vinci does and more in terms of the capabilities, US friendliness, features, and specialties, including cardiac surgery. And it will be by the time we come to US., it will be somewhat less than half the price that of the DV5 with, again, better opportunities. So I think we feel that there's a great opportunity in US as well once you get passive VA and also the whole military surgery center market. You know, our system being modular, a three-arm system, which is a full robot with all best and results is a great opportunity for ASC.