Article preview from IN VIVO - June, 2009
The economic meltdown that drove many publicly traded share prices into the ground promised to spark a shopping spree for strategic investors looking to score inexpensive assets. The deals largely haven't materialized, but Intuitive Surgical., with more than $800 million in cash reserves and investments, is certainly beginning to nibble. Over the past six months, Intuitive has signed three technology-sharing agreements and bought the assets of a fourth in pursuit of new technologies to help feed future products to sell along side-or potentially inside-its da Vinci surgical systems. Read on...
Intuitive Surgical Secures New Technologies
Article previewfrom IN VIVO - June, 2009
Intuitive historically hasn't been acquisitive. The company's only significant purchase came in 2003 when it acquired rival company Computer Motion, in part to settle patent disputes. In the recent spate of deals, Intuitive hasn't really deviated from that course, using its cash primarily to sign technology-sharing agreements with three companies: Encision Inc., Novadaq Technologies Inc., and Power Medical Interventions Inc. Intuitive bought the assets and intellectual property of a fourth company, the now-closed business, NeoGuide Systems Inc.
Benjamin B. Gong, vice president of finance, says Intuitive is responding to an economic reality. The company sits on "a fair amount" of cash reserves and investments while others are struggling to raise capital. "That gives us the flexibility to acquire things that could be complementary to our system," Gong said. "We had the cash to do [the deals] while the other companies need the cash. And they have some pretty interesting technologies."Intuitive will make more deals. Gong says the company tracks all small companies with products that might fit into the da Vinci endoscopic surgical system.
The partnerships and acquisition give Intuitive access to surgical tools and an imaging system that might be incorporated into future versions of its da Vinci robot-assisted surgical systems. Intuitive just released its third iteration of the robotic-assisted surgical system, da Vinci SI HD, in April. Like the second version, da Vinci S, the new system simply adds features to Intuitive's core robotic system, which gives surgeons the means to perform complex surgeries through smaller incisions. Intuitive sells both surgical systems and the necessary accessories.
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Companies mentioned in this article:
Encision Inc., Hansen Medical Inc., Intuitive Surgical Inc., NeoGuide Systems Inc., Novadaq Technologies Inc.,Power Medical Interventions Inc.
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