TransEnterix Inc (NYSEAMERICAN: TRXC) is having yet another strong day in the market today as the Senhance Surgical Robotic System takes center stage. With recent gains on the stock, many are starting to wonder if now is the time to get involved. Today, we’ll talk about the recent approval of Senhance, why this is such a big thing for the company, and what we’ll be watching for ahead.
TRXC Is Centered Around Senhance
As mentioned above, TransEnterix has been doing pretty well in the market as of late, with more gains happening today. Ultimately, the movement that we’ve seen on the stock can be attributed to the recent news of the FDA providing 510(k) clearance surrounding the company’s Senhance Surgical Robotic System.
Due to the 510(k) clearance, TRXC is the first to bring a surgical robot into the medical field of abdominal surgical robotics since the year 2000. The Senhance Surgical Robotic System is a relatively simple one to understand. Using the system, a surgeon directs small surgical instruments and a camera with precise movements and comfort. Ultimately, it is believed that this system will bring a level of simplicity to the abdominal surgery space.
Another key advantage to the system is cost and ability to merge with the current medical ecosystem. You see, Senhance by TRXC is built on an open architecture platform, allowing hospitals and surgeions to leverage the technology in conjunction with existing technological investments for a clean entrance into the operating room ecosystem. It’s also worth noting that Senhance was specifically designed to manage operative costs efficiently, making the system more cost-effective on a per-procedure basis through the use of fully-reusable instruments. In a statement, Todd M. Pope, President and CEO at TransEnterix, recently had the following to offer with regard to the approval:
“The clearance of the Senhance System in the US is a milestone in the progress of robotics and is expected to deliver improvement in the efficacy, value and choices offered to patients, surgeons and hospitals… Millions of surgical procedures in the US are performed each year laparoscopically with basic manual tools that limit surgeons’ capability, comfort and control. New choices are needed that enhance the senses, control and comfort of the surgeon, minimize the invasiveness of surgery for the patient, and maximize the value for the hospital. Senhance is this new choice.”
Excitement Isn’t Exclusive To Shareholders
While the approval of the Senhance system is exciting for TRXC shareholders, they are not the only people that are excited. Stifel Nicolaus Analyst Rick Wise wrote on Monday with regard to Surgeon interest surrounding the system. Here’s what he had to offer:
“Surgeon interest in Senhance is clearly high; surgeons appeared to react positively to Senhance’s differentiated feature set/attractive economics; and those reactions augur well for Senhance adoption, utilization and our 2018 and beyond revenue projections… We believe it will take well into 2018 to see the all of Senhance’s differentiated functionality and attractive economic model to translate to visible system sales and revenues.”
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on TRXC. In particular, we’re interested in following the story surrounding Senhance and excited to see the uptake among the abdominal surgery community. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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