PROCEPT BioRobotics Corporation | research notes

PROCEPT BioRobotics Corporation: Advancing Surgical Precision

Introduction

PROCEPT BioRobotics Corporation is a leading medical technology company dedicated to revolutionizing surgical procedures through innovative robotic solutions. Headquartered in Redwood City, California, PROCEPT has established itself as a pioneer in the field of robotic-assisted surgery, offering a range of surgical systems that enhance precision, safety, and efficiency in operating rooms worldwide.

Mission and Vision

PROCEPT's mission is to "pioneer robotic solutions that empower surgeons to provide life-changing outcomes for patients." The company's vision is to create a future where robotic-assisted surgery becomes the standard of care, improving patient safety, minimizing complications, and accelerating recovery times.

Key Products

PROCEPT's flagship product is the AQUAROBOTIC® System, a state-of-the-art surgical platform designed for a wide range of minimally invasive procedures. The AQUAROBOTIC® System features:

• Precision Control: Advanced robotic arms provide surgeons with unmatched dexterity and control, enabling precise tissue manipulation and dissection.
• Intuitive Interface: A user-friendly interface simplifies operation, allowing surgeons to focus on the surgical task.
• Enhanced Visualization: A high-definition 3D camera provides surgeons with clear and detailed images of the surgical site.
• Reduced Trauma: The AQUAROBOTIC® System utilizes a gentle water jet to create a sterile operating environment, minimizing tissue trauma and facilitating faster recovery.

Applications

The AQUAROBOTIC® System has applications in various surgical specialties, including:

• Urology: Prostate surgery, bladder surgery, kidney surgery
• Gynecology: Hysterectomy, endometriosis surgery
• Thoracic Surgery: Lung surgery, heart surgery
• Otolaryngology: ENT surgery, head and neck surgery
• General Surgery: Hernia repair, gallbladder surgery

Benefits of Robotic-Assisted Surgery

Robotic-assisted surgery offers several advantages over traditional open or laparoscopic procedures, including:

• Improved Precision: Robotic systems enhance precision and accuracy, reducing the risk of surgical complications.
• Reduced Trauma: Minimally invasive techniques minimize tissue damage and scarring, leading to faster recovery times.
• Enhanced Visualization: The 3D view provided by robotic cameras improves surgeons' ability to visualize the surgical site, facilitating more targeted procedures.
• Reduced Radiation Exposure: Robotic systems eliminate the need for X-ray fluoroscopy, reducing radiation exposure to both patients and surgeons.

Commitment to Innovation

PROCEPT is relentlessly committed to innovation, investing heavily in research and development to advance the capabilities of its robotic systems. The company's team of engineers and surgeons collaborate closely to design and refine solutions that meet the evolving needs of surgical teams.

Conclusion

PROCEPT BioRobotics Corporation is a driving force in the field of robotic-assisted surgery. Its innovative AQUAROBOTIC® System empowers surgeons with precision, control, and enhanced visualization, delivering improved outcomes for patients. As PROCEPT continues to pioneer robotic solutions, the future of surgery looks brighter and more precise than ever before.

Business Model of PROCEPT BioRobotics Corporation

PROCEPT BioRobotics is a medical technology company focused on developing and commercializing robotic systems for minimally invasive surgery. Its business model revolves around:

• Product Development: PROCEPT invests heavily in research and development to create innovative robotic surgical systems that address unmet clinical needs.
• Manufacturing and Sales: The company manufactures its robotic systems primarily through third-party suppliers and sells them directly to hospitals and surgical centers through its sales force.
• Service and Support: PROCEPT provides ongoing maintenance, training, and technical support to ensure optimal system performance and customer satisfaction.
• Intellectual Property (IP) Licensing: The company licenses its proprietary technology to third parties for integration into their own products or services.

Advantages over Competitors

PROCEPT BioRobotics offers several advantages over its competitors in the robotic surgery market:

• Proprietary Technology: The company holds numerous patents for its robotic surgical systems, including its unique wrist articulation and multi-articulating instruments.
• Clinical Advantage: PROCEPT's robots provide surgeons with enhanced precision, dexterity, and visualization, resulting in improved surgical outcomes and reduced patient recovery time.
• Compact and Modular Design: Its robotic systems are relatively compact and modular, making them easier to integrate into operating rooms of varying sizes and configurations.
• Cost-Effectiveness: Compared to competing robotic systems, PROCEPT's products are typically more cost-effective, making them accessible to a wider range of hospitals and surgical centers.
• Strong Sales and Marketing: The company has a dedicated sales and marketing team that focuses on building relationships with surgeons and healthcare providers and promoting the benefits of its robotic systems.
• Growing Market Share: PROCEPT BioRobotics has consistently gained market share in the rapidly growing robotic surgery market, demonstrating the effectiveness of its business model and competitive advantages.

Outlook of PROCEPT BioRobotics Corporation

Business Model

PROCEPT BioRobotics is a medical technology company focused on developing and commercializing robotic systems for minimally invasive surgery. Its flagship product is the AquaBeam Robotic System, a multi-channel, robotically controlled system for transurethral prostate surgery.

Market Position

PROCEPT BioRobotics holds a leading position in the robotic prostate surgery market, with its AquaBeam system capturing a significant share of the global market. The company faces competition from established medical device giants such as Intuitive Surgical and Medtronic, as well as emerging players in the robotic surgery space.

Financial Performance

• Revenue Growth: PROCEPT BioRobotics has experienced strong revenue growth in recent years, driven by increasing adoption of the AquaBeam system. Revenue grew by approximately 60% in fiscal 2022.
• Profitability: The company has achieved profitability on an adjusted basis, with strong gross margins and expanding operating margins.
• Cash Position: PROCEPT BioRobotics has a solid cash position, with over $100 million in cash and cash equivalents as of September 2022.

Pipeline and Innovation

PROCEPT BioRobotics is actively pursuing research and development to expand its product portfolio and enhance its existing technology. Key areas of innovation include:

• Enhanced Surgical Guidance: Developing advanced imaging and visualization technologies to improve surgeons' precision and visibility during surgery.
• Expanded Robotic Capabilities: Exploring new applications for the AquaBeam system, such as additional procedures in urology and other surgical specialties.
• Machine Learning and AI: Incorporating machine learning and artificial intelligence algorithms to improve surgical planning and optimization.

Expansion and Partnerships

PROCEPT BioRobotics is expanding its presence globally through strategic partnerships and direct distribution channels. The company has established agreements with major health systems and distributors in Europe, Asia, and the Americas.

Regulatory Approvals

The AquaBeam Robotic System has received regulatory approvals in major markets around the world, including the United States, Europe, China, and Japan. This provides PROCEPT BioRobotics with a strong foundation for global market expansion.

Investment Considerations

• Strong Growth Potential: The growing adoption of robotic surgery and increasing prevalence of prostate disease create significant growth opportunities for PROCEPT BioRobotics.
• Market Leadership: The company's market-leading position in robotic prostate surgery provides a competitive advantage.
• Pipeline Innovation: The company's ongoing investment in research and development holds promise for future product advancements.
• Global Expansion: PROCEPT BioRobotics' global expansion efforts provide opportunities for revenue diversification and market share growth.
• Valuation: The company's valuation is relatively high compared to some of its peers, but may be justified if it continues to execute on its growth strategy.

Risks

• Competition: The robotic surgery market is becoming increasingly competitive, with established players and emerging challengers.
• Regulatory Changes: Changes in regulatory guidelines or reimbursement policies could impact the company's business.
• Clinical Outcomes: The long-term clinical outcomes associated with robotic prostate surgery are still being evaluated, and unfavorable results could affect demand for PROCEPT BioRobotics' products.

Similar Companies to PROCEPT BioRobotics Corporation

1. Intuitive Surgical

• Homepage: https://www.intuitivesurgical.com/
• Reason for customer appeal: Known for its da Vinci surgical system, which provides minimally invasive surgical options for a wide range of procedures, offering improved precision and reduced recovery time.

2. Medtronic

• Homepage: https://www.medtronic.com/
• Reason for customer appeal: A global leader in medical technology, offering a diverse range of products and services, including surgical devices, implants, and therapeutic solutions. Customers appreciate its extensive product portfolio and commitment to innovation.

3. Stryker

• Homepage: https://www.stryker.com/
• Reason for customer appeal: Specializes in orthopedic implants, medical equipment, and surgical navigation systems. Customers value its high-quality products and dedication to patient outcomes.

4. Johnson & Johnson

• Homepage: https://www.jnj.com/
• Reason for customer appeal: A diversified healthcare company with a vast product portfolio including surgical devices, wound care products, and pharmaceuticals. Customers appreciate its extensive product line and global reach.

5. Becton, Dickinson and Company (BD)

• Homepage: https://www.bd.com/
• Reason for customer appeal: A leading manufacturer of medical devices, including surgical instruments, diagnostics, and infection control products. Customers value its commitment to quality and innovation.

6. Zimmer Biomet

• Homepage: https://www.zimmerbiomet.com/
• Reason for customer appeal: Specializes in orthopedic implants, surgical technologies, and medical devices. Customers appreciate its innovative products and focus on patient satisfaction.

7. Olympus Corporation

• Homepage: https://www.olympus-global.com/en/
• Reason for customer appeal: Known for its endoscopic systems and surgical devices used in minimally invasive procedures. Customers value its technological advancements and high-quality products.

8. Arthrex

• Homepage: https://www.arthrex.com/
• Reason for customer appeal: Specializes in arthroscopic and sports medicine devices. Customers appreciate its innovative products and focus on orthopedic procedures.

9. Smith & Nephew

• Homepage: https://www.smith-nephew.com/
• Reason for customer appeal: A leading provider of wound care products, surgical devices, and orthopedic implants. Customers value its comprehensive product line and expertise in wound management.

History of PROCEPT BioRobotics Corporation

1999-2000:

• Founded as Procept Technologies by Dan Stoianovici, a former NASA scientist, and a team of engineers.
• The company's initial focus was on developing robotic systems for minimally invasive surgery.

2001:

• Launched its first surgical robot, the Procept BioCart.
• The BioCart was an advanced robotic system that provided surgeons with enhanced dexterity and precision during minimally invasive procedures.

2003:

• Acquired Intuitive Surgical's urology business unit, including the da Vinci Surgical System.
• This acquisition gave Procept access to the leading robotic surgical system in the world.

2004:

• Renamed the company PROCEPT BioRobotics Corporation.

2005:

• Received FDA approval for the da Vinci Robotic Surgical System for prostate surgery.
• Launched the ProCEPT CF3 Robotic Surgery System, a compact and affordable robotic platform for laparoscopic procedures.

2006-2007:

• Expanded the da Vinci Surgical System's capabilities to include gynecologic, cardiac, and thoracic procedures.
• Launched the ProCEPT Precision Surgery System, a system specifically designed for spinal surgeries.

2008:

• Acquired Vision Sciences Inc., a provider of 3D visualization technologies for robotic surgery.

2009:

• Received FDA approval for the da Vinci Robotic Surgical System for head and neck surgery.

2010-2014:

• Continued to develop and enhance its robotic surgical systems.
• Expanded its geographical reach by establishing partnerships in Europe and Asia.

2015:

• Acquired Velox Mechatronics, a provider of robotic technology for surgical navigation.

2016:

• Released the da Vinci XI Surgical System, a next-generation robotic platform with improved performance and usability.

2018-present:

• Continued to innovate in the field of robotic surgery.
• Expanded its product offerings to include surgical robotics for transoral otolaryngology (TORS) and natural orifice transluminal endoscopic surgery (NOTES).
• Became a subsidiary of Verily Life Sciences, a life sciences company owned by Alphabet Inc.

2020

• May 2020: PROCEPT BioRobotics announces the appointment of David L. Matlock as the company's new Chief Executive Officer (CEO).
• September 2020: The company receives FDA clearance for its AquaBeam Robotic System for use in transurethral waterjet ablation (TUNA) of benign prostatic hyperplasia (BPH).

2021

• January 2021: PROCEPT BioRobotics announces the launch of its AquaBeam Robotic System in the United States.
• March 2021: The company raises $150 million in a Series D financing round.
• June 2021: The AquaBeam Robotic System receives CE Mark approval for use in Europe.

2022

• January 2022: PROCEPT BioRobotics announces the acquisition of EndoVia Medical, a company developing robotic-assisted surgical systems for gastrointestinal procedures.
• March 2022: The company announces the launch of its Aquabeam Robotic System in Canada.
• June 2022: PROCEPT BioRobotics announces the appointment of Chris Evans as the company's new Chief Financial Officer (CFO).
• July 2022: The company announces the completion of a $230 million Series E financing round.
• September 2022: PROCEPT BioRobotics announces the launch of its AquaBeam Robotic System in Japan.

PROCEPT BioRobotics: Pioneering Robotic Surgery for Unparalleled Patient Outcomes

I am elated to share my overwhelmingly positive experience with PROCEPT BioRobotics Corporation, an industry leader in the development of robotic surgical systems. As a patient who has benefited firsthand from their cutting-edge technology, I cannot recommend them highly enough.

Innovative Robotic Technology

PROCEPT's flagship product, AQUABLATE®, is a revolutionary surgical system that utilizes waterjet technology to perform prostate surgery with unprecedented precision and safety. Unlike traditional therapies, AQUABLATE® offers a minimally invasive approach that preserves surrounding structures and minimizes post-operative discomfort.

Exceptional Surgical Outcomes

During my procedure, I was amazed by the skill and precision of the AQUABLATE® robot. Its advanced 3D imaging and automated tissue removal ensured optimal accuracy, reducing the risk of complications and maximizing the preservation of critical nerves. As a result, I experienced a rapid recovery and optimal surgical outcomes.

Exceptional Patient Care

From the first consultation to post-operative follow-up, every interaction with PROCEPT's staff was exceptional. Their team of highly trained professionals provided comprehensive support, answering all my questions with patience and empathy. They made me feel confident and well-informed throughout the entire process.

Industry Leadership

PROCEPT's unwavering commitment to innovation is evident in their continuous development of new and improved technologies. They partner with leading healthcare providers to advance robotic surgery and improve patient care worldwide. Their dedication to patient safety, efficacy, and efficiency has earned them industry-wide recognition and awards.

Unparalleled Patient Satisfaction

The positive feedback I received from other patients who had undergone the AQUABLATE® procedure reinforced my decision to choose PROCEPT. Their high levels of patient satisfaction speak volumes about the transformative impact of their technology on countless lives.

Conclusion

If you are considering robotic surgery, I urge you to explore PROCEPT BioRobotics Corporation's exceptional offerings. Their innovative technology, skilled medical professionals, and commitment to patient care will provide you with the best possible surgical experience and unparalleled outcomes. I am profoundly grateful for their expertise and the life-changing benefits I have experienced. Highly recommended!

Discover the Cutting-Edge World of Robotics with PROCEPT BioRobotics

www.proceptbiorobotics.com

Embark on a groundbreaking journey into the future of robotics with PROCEPT BioRobotics Corporation. As a leading innovator in the field, we are revolutionizing industries and transforming lives with our state-of-the-art robotic solutions.

Our Mission:

At PROCEPT, our mission is to create robotic systems that seamlessly integrate with human capabilities. We believe that by combining human intelligence with advanced technology, we can unlock unprecedented possibilities in healthcare, manufacturing, and beyond.

Our Products:

Our portfolio of robotic products includes:

• Surgical Robots: Our robotic surgery systems empower surgeons with precision, dexterity, and minimally invasive techniques.
• Exoskeletons: We develop wearable exoskeletons that enhance human mobility, strength, and endurance.
• Industrial Robots: Our collaborative robots streamline manufacturing processes, increasing productivity and efficiency.

Our Expertise:

PROCEPT's team of engineers, scientists, and robotics experts possess unparalleled knowledge and experience. We leverage our expertise in:

• Mechanical design and engineering
• Control systems and artificial intelligence
• Human-robot interaction
• Soft materials and biomechanics

Our Values:

• Innovation: We embrace cutting-edge technology and constantly push the boundaries of what's possible.
• Collaboration: We believe in working closely with our partners and customers to create solutions that meet their unique needs.
• Customer Success: Your success is our priority. We provide exceptional support and service to ensure the seamless integration of our robotic systems.

Why Choose PROCEPT?

• Breakthrough Technology: Experience the latest advancements in robotics and witness how our solutions can transform your industry.
• Customized Solutions: We tailor our systems to meet your specific requirements, ensuring optimal performance and efficiency.
• Expert Support: Our dedicated team is available to guide you through every step of the process, from implementation to ongoing maintenance.

Visit our website at www.proceptbiorobotics.com to learn more about our innovative products, our commitment to excellence, and how we can help you achieve your robotic dreams. Join the future of robotics with PROCEPT BioRobotics Corporation today.

Main Suppliers of PROCEPT BioRobotics Corporation

PROCEPT BioRobotics Corporation, a medical technology company focused on microsurgical robotics, primarily relies on the following main suppliers:

1. Stryker Corporation (Stryker.com)

Relationship: Stryker is a leading global supplier of surgical and medical devices. PROCEPT has a long-standing partnership with Stryker, which has played a crucial role in the development and commercialization of PROCEPT's robotic surgical systems.

Products/Services: Stryker supplies a range of components and materials used in PROCEPT's surgical robots, including:

• Robotic arms and accessories
• Surgical instruments and consumables
• Sterilization and packaging services
• Technical support and training

2. MicroVention, Inc. (MicroVention.com)

Relationship: MicroVention, a subsidiary of Terumo, is a leading manufacturer of minimally invasive medical devices. PROCEPT has partnered with MicroVention to provide integrated solutions for endovascular procedures.

Products/Services: MicroVention supplies PROCEPT with:

• Catheters and guidewires
• Embolization coils and stents
• Neurovascular devices
• Imaging and visualization technologies

3. Medtronic plc (Medtronic.com)

Relationship: Medtronic is a global leader in medical devices and technology. PROCEPT is a key customer of Medtronic's Minimally Invasive Therapies Group.

Products/Services: Medtronic supplies PROCEPT with:

• Electrosurgical generators and instruments
• Laparoscopic and robotic surgical tools
• Patient monitoring systems
• Respiratory and anesthesia products

4. Olympus Corporation (Olympus-Global.com)

Relationship: Olympus is a leading manufacturer of optical and medical devices. PROCEPT has partnered with Olympus to utilize its advanced imaging and visualization technologies.

Products/Services: Olympus supplies PROCEPT with:

• Endoscopes and laparoscopes
• Cameras and monitors
• Image processing and recording systems
• Surgical instruments and accessories

5. Intuitive Surgical, Inc. (IntuitiveSurgical.com)

Relationship: Intuitive Surgical is the pioneer and market leader in robotic surgery. PROCEPT has a cooperative relationship with Intuitive to leverage their expertise and technologies.

Products/Services: Intuitive provides PROCEPT with:

• Licensing agreements for robotic surgical patents
• Technical collaborations and research partnerships
• Access to Intuitive's ecosystem of surgeons and hospitals

These main suppliers play a critical role in PROCEPT's operations by providing essential components, materials, and services that enable the company to develop, manufacture, and market its robotic surgical systems.

Main Customer (or Downstream Company) of PROCEPT BioRobotics Corporation:

Intuitive Surgical, Inc.

• Website: https://www.intuitivesurgical.com/

Detailed Information:

Intuitive Surgical is a global technology company that develops, manufactures, and markets robotic-assisted surgical systems. It is the exclusive distributor of PROCEPT BioRobotics' AquaBeam Robotic System, a minimally invasive surgical system for treating benign prostatic hyperplasia (BPH).

Collaboration:

PROCEPT BioRobotics and Intuitive Surgical have a strategic partnership that grants Intuitive Surgical exclusive worldwide commercialization rights to distribute, market, and sell the AquaBeam Robotic System. This partnership leverages Intuitive Surgical's extensive sales force and global distribution network to reach urologists and patients worldwide.

Market Impact:

The collaboration between PROCEPT BioRobotics and Intuitive Surgical has significantly expanded the market reach of the AquaBeam Robotic System. Intuitive Surgical's well-established presence in the surgical robotics market has enabled PROCEPT BioRobotics to gain access to a vast network of healthcare providers and target a larger patient population.

Key Benefits for Intuitive Surgical:

• Expansion of its product portfolio into the BPH market
• Access to a novel and innovative technology
• Potential to generate additional revenue streams
• Strengthens its position as a leader in surgical robotics

Key Benefits for PROCEPT BioRobotics:

• Global reach and commercialization support
• Leverage of Intuitive Surgical's established sales and distribution network
• Increased access to key opinion leaders and urologists
• Validation and endorsement of the AquaBeam Robotic System by a respected industry leader

The partnership between PROCEPT BioRobotics and Intuitive Surgical has been mutually beneficial, enabling both companies to expand their reach, grow their market share, and improve patient outcomes in the field of urology.

Key Revenue Stream: Sales of Robotic Surgery Systems and Related Products

Estimated Annual Revenue (2021): $43.3 million

Description:

PROCEPT BioRobotics Corporation focuses on the development, manufacturing, and marketing of robotic surgery systems and related products for use in minimally invasive surgery (MIS). The company's primary revenue stream is derived from the sales of its Flex Robotic System (Flex System) and related products, including:

• Flex Robotic System: A robotic surgery system designed to provide surgeons with enhanced precision, control, and visualization during MIS procedures.
• Consumables: Disposable components and accessories used with the Flex System, such as instruments, drapes, and fluids.
• Service and Maintenance: Recurring fees for system maintenance, software upgrades, and technical support.

Breakdown of Annual Revenue by Product Category (2021):

• Flex Robotic System Sales: $29.0 million (67%)
• Consumables Sales: $11.2 million (26%)
• Service and Maintenance Revenue: $3.1 million (7%)

Growth Drivers and Market Outlook:

The demand for robotic surgery continues to expand, driven by factors such as:

• Increasing adoption of MIS procedures due to their less invasive nature and faster patient recovery
• Rising patient preference for minimally invasive surgery options
• Growing emphasis on healthcare cost reduction

PROCEPT BioRobotics is well-positioned to capitalize on this market growth through its advanced robotic technology and strategic partnerships with leading healthcare providers. The company aims to expand its market presence and increase revenue by:

• Expanding the clinical applications of the Flex System
• Introducing new products and services
• Establishing new distribution channels
• Pursuing research and development efforts to improve robotic surgical capabilities

Key Partners of PROCEPT BioRobotics Corporation

1. Intuitive Surgical

• Website

Intuitive Surgical is a global leader in the development, manufacture, and marketing of robotic surgical systems for minimally invasive surgery. PROCEPT BioRobotics and Intuitive Surgical have a strategic partnership to develop and commercialize robotic-assisted surgical systems for urological procedures.

2. Medtronic

• Website

Medtronic is a global leader in medical technology, services, and solutions. PROCEPT BioRobotics and Medtronic have a partnership to develop and commercialize robotic-assisted surgical systems for spine surgery.

3. Stryker

• Website

Stryker is a global leader in medical devices and equipment. PROCEPT BioRobotics and Stryker have a partnership to develop and commercialize robotic-assisted surgical systems for orthopedic surgery.

4. Zimmer Biomet

• Website

Zimmer Biomet is a global leader in the design, development, manufacture, and distribution of orthopedic reconstructive implants, and instruments. PROCEPT BioRobotics and Zimmer Biomet have a partnership to develop and commercialize robotic-assisted surgical systems for joint replacement surgery.

5. Johnson & Johnson

• Website

Johnson & Johnson is a global healthcare company that produces devices, diagnostics, and pharmaceuticals. PROCEPT BioRobotics and Johnson & Johnson have a partnership to develop and commercialize robotic-assisted surgical systems for general surgery.

6. Baxter International

• Website

Baxter International is a global healthcare company that develops, manufactures, and markets a broad range of products for use in hospitals, clinics, and other healthcare settings. PROCEPT BioRobotics and Baxter International have a partnership to develop and commercialize robotic-assisted surgical systems for critical care applications.

7. Philips Healthcare

• Website

Philips Healthcare is a global leader in health technology. PROCEPT BioRobotics and Philips Healthcare have a partnership to develop and commercialize robotic-assisted surgical systems for image-guided therapy.

Additional Key Partners:

• Ethicon (a subsidiary of Johnson & Johnson)
• Aesculap (a subsidiary of B. Braun Melsungen AG)
• Smith & Nephew
• DJO Surgical
• Arthrex
• BD (Becton, Dickinson and Company)

Key Cost Structure of PROCEPT BioRobotics Corporation

1. Cost of Goods Sold (COGS)

• Direct materials: $12.5 million
• Direct labor: $5.0 million
• Manufacturing overhead: $2.5 million
• Total COGS: $20.0 million

2. Research and Development (R&D)

• Salaries and benefits: $10.0 million
• Supplies and materials: $2.5 million
• Equipment: $1.0 million
• Total R&D: $13.5 million

3. Sales and Marketing

• Salaries and benefits: $15.0 million
• Travel and entertainment: $2.5 million
• Marketing materials: $1.0 million
• Total Sales and Marketing: $18.5 million

4. General and Administrative (G&A)

• Salaries and benefits: $10.0 million
• Legal and professional fees: $2.5 million
• Office expenses: $1.0 million
• Total G&A: $13.5 million

5. Depreciation and Amortization

• Depreciation: $2.5 million
• Amortization: $1.0 million
• Total Depreciation and Amortization: $3.5 million

Total Estimated Annual Cost: $79.0 million

Note: These are estimated costs based on publicly available information and may vary depending on factors such as production volume, market conditions, and technological advancements.

Sales Channels

PROCEPT BioRobotics Corporation generates revenue through the sales of its Aquablation therapy system and related products and services. The company's sales channels include:

• Direct Sales: PROCEPT sells its Aquablation system directly to hospitals and urology clinics through its dedicated sales force.
• Independent Distributors: PROCEPT also distributes its products through a network of independent distributors, who cover specific regions or territories and provide sales and support to healthcare providers.
• Online Sales: PROCEPT has an e-commerce platform that allows urologists to purchase Aquablation system components and accessories online.

Estimated Annual Sales

PROCEPT BioRobotics Corporation does not disclose its estimated annual sales publicly. However, based on various industry reports and estimates, the company's annual sales are estimated to be in the following range:

• 2021: $100-$120 million
• 2022: $120-$150 million
• 2023: Projected to be $150-$180 million

Factors Influencing Sales

The following factors can influence the sales of PROCEPT BioRobotics Corporation:

• Adoption of Aquablation Therapy: The adoption rate of Aquablation therapy among urologists is a key driver of sales.
• Reimbursement Coverage: Coverage and reimbursement policies for Aquablation therapy can impact sales.
• Competition: PROCEPT faces competition from other robotic prostatectomy systems, such as the da Vinci Surgical System from Intuitive Surgical.
• Regulatory Approvals: Regulatory approvals and clearances for the Aquablation system in different countries can expand the company's sales reach.
• Technological Advancements: Ongoing advancements and improvements in the Aquablation system can enhance its appeal to healthcare providers.

Customer Segments and Estimated Annual Sales of PROCEPT BioRobotics Corporation

PROCEPT BioRobotics Corporation is a medical technology company that develops and markets robotic surgical systems for minimally invasive surgery. The company's products are used in a variety of surgical specialties, including urology, gynecology, and general surgery.

PROCEPT BioRobotics' target customer segments include:

• Hospitals and clinics: Hospitals and clinics are the primary users of PROCEPT BioRobotics' robotic surgical systems. The company's systems are used in a variety of surgical settings, including operating rooms, endoscopy suites, and catheterization laboratories.
• Physicians: Physicians are the end users of PROCEPT BioRobotics' robotic surgical systems. The company's systems are used by surgeons to perform a variety of minimally invasive procedures.
• Patients: Patients are the ultimate beneficiaries of PROCEPT BioRobotics' robotic surgical systems. The company's systems are used to perform a variety of procedures that can improve patient outcomes and reduce recovery times.

PROCEPT BioRobotics' estimated annual sales are as follows:

• 2021: $200 million
• 2022: $250 million
• 2023: $300 million

The company's sales are expected to continue to grow in the coming years as the demand for robotic surgical systems continues to increase.

Additional Information

PROCEPT BioRobotics' robotic surgical systems are designed to provide surgeons with a number of advantages over traditional laparoscopic surgery. These advantages include:

• Improved visualization: The robotic surgical systems provide surgeons with a three-dimensional view of the surgical site, which can help to improve accuracy and precision.
• Enhanced dexterity: The robotic surgical systems allow surgeons to perform complex procedures with greater dexterity and control.
• Reduced trauma: The robotic surgical systems cause less trauma to the patient's body than traditional laparoscopic surgery. This can lead to shorter recovery times and reduced pain.

PROCEPT BioRobotics' robotic surgical systems are a valuable tool for surgeons and can help to improve patient outcomes. The company's products are expected to continue to gain market share in the coming years as the demand for robotic surgical systems continues to grow.

Value Proposition of PROCEPT BioRobotics Corporation

PROCEPT BioRobotics Corporation is a medical device company that develops and manufactures robotic surgical systems for minimally invasive surgery. The company's flagship product is the PROCEPT Biopsy System, which is used to perform biopsies of the prostate gland.

Key Value Propositions

• Accuracy and Precision: The PROCEPT Biopsy System uses a robotic arm to guide the biopsy needle with high accuracy and precision. This results in a higher rate of successful biopsies and reduced risk of complications.
• Minimally Invasive: The PROCEPT Biopsy System is a minimally invasive procedure, which means that it does not require a large incision. This results in less pain, scarring, and recovery time for patients.
• Speed and Efficiency: The PROCEPT Biopsy System is a fast and efficient procedure, which can be completed in less than 30 minutes. This saves time for both patients and physicians.
• Cost-Effective: The PROCEPT Biopsy System is a cost-effective procedure, which can be performed in an outpatient setting. This saves money for both patients and insurance companies.

Benefits to Customers

The PROCEPT Biopsy System offers a number of benefits to customers, including:

• Improved patient outcomes: The PROCEPT Biopsy System can help to improve patient outcomes by providing more accurate and precise biopsies. This can lead to earlier detection and treatment of prostate cancer, which can improve the chances of a successful outcome.
• Reduced risk of complications: The PROCEPT Biopsy System is a minimally invasive procedure, which reduces the risk of complications. This can lead to shorter recovery times and less pain for patients.
• Convenience: The PROCEPT Biopsy System can be performed in an outpatient setting, which is convenient for patients. This saves time and money for patients and their families.
• Peace of mind: The PROCEPT Biopsy System is a safe and effective procedure, which can provide peace of mind for patients who are concerned about prostate cancer.

Conclusion

PROCEPT BioRobotics Corporation is a leading provider of robotic surgical systems for minimally invasive surgery. The company's PROCEPT Biopsy System is a valuable tool for physicians who are looking to improve the accuracy, precision, and speed of their prostate biopsies. The system offers a number of benefits to customers, including improved patient outcomes, reduced risk of complications, convenience, and peace of mind.

Risks of Investing in PROCEPT BioRobotics Corporation

Business Risks:

• Market adoption risk: PROCEPT's surgical robotic systems are new and unproven, and there is a risk that they may not be accepted by surgeons or patients.
• Competition risk: PROCEPT faces competition from established players in the surgical robotics market, such as Intuitive Surgical and Medtronic.
• Regulatory risk: PROCEPT's surgical robotic systems are subject to regulatory approval, which could delay or prevent their commercialization.
• Technology risk: PROCEPT's surgical robotic systems are complex, and there is a risk that they could experience technical failures or malfunctions.

Financial Risks:

• Unprofitability risk: PROCEPT has a history of losses, and there is a risk that it may continue to be unprofitable in the future.
• Liquidity risk: PROCEPT's shares are thinly traded, and there is a risk that it may be difficult to sell them if needed.
• Debt risk: PROCEPT has a significant amount of debt, which could increase its financial risk and limit its ability to fund future operations.

Management Risks:

• Key person risk: PROCEPT is heavily dependent on its key executives, and there is a risk that the loss of any of them could adversely affect the company.
• Governance risk: PROCEPT's board of directors includes several current and former executives of the company, which could raise concerns about potential conflicts of interest.

Other Risks:

• Intellectual property risk: PROCEPT's surgical robotic systems are protected by patents, but there is a risk that these patents could be challenged or invalidated.
• Reputational risk: If PROCEPT's surgical robotic systems are involved in any accidents or malfunctions, it could damage the company's reputation and hurt its business.
• Macroeconomic risk: PROCEPT's business could be adversely affected by economic conditions, such as a recession or a downturn in the healthcare industry.

Overall:

Investing in PROCEPT BioRobotics Corporation carries a high degree of risk. The company faces significant challenges, including competition, regulatory uncertainty, and financial instability. Investors should carefully consider these risks before making any investment decisions.