Differentiation is the name of the game in the spine space today, and it seems clear that Medtronic (MDT)
believes in the long-term future of robotics as a disrupting and
differentiating opportunity. To that end, the company announced that it
will be acquiring its partner Mazor (MZOR) in an all-cash deal that will give it full control over the future development of this leading robotics platform.
Even
with the expected revenue re-acceleration in 2019 driven by the
upcoming Mazor X Stealth (which brings integrated navigation to the
robot), I believe Mazor is getting a fair price at over 18x estimated
2019 revenue. For Medtronic, while some investors may criticize the deal
as buying the cow when they had already had a good deal in place for
the milk, I believe total ownership of the platform and control over the
future development path is worth paying for given the need to have a
differentiated platform in the spine space today.
Continue here:
Medtronic Steps Up With A Bigger Commitment To Robotics
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