Issue link: https://beckershealthcare.uberflip.com/i/1388297
32 DEVICES & IMPLANTS Let's talk robots: 9 CEO insights from Medtronic, Stryker & more By Alan Condon T he global surgical robot market is projected to hit $14.4 billion by 2026, up from about $6.4 billion in 2021, according to a report by MarketsandMarkets. Medtronic's Mazor system continues to lead the spine robot market. Globus Medical and Zimmer Biomet continue to push their spine robots and NuVasive expects to launch a competing system later this year. Here are nine insights on robotics in spine, hip and knee surgery from the CEOs of Medtronic, Stryker, Zimmer Biomet and Nu- Vasive. Medtronic 1. Hospital investment: In Medtronic's fiscal year 2021 third quarter earnings call, CEO Geoff Martha was optimistic about the com- pany's hospital customers' recovery. "e use of our capital equipment — such as energy consoles, robotics and navigation systems — is tied directly to procedures, so it's telling that hospitals are prioritizing spending on this type of equipment." 2. Record robot sales: Medtronic reported a strong quarter in capital equipment sales, "with a record number of Mazor robotic system unit sales, and near records for our O-arm imaging and StealthStation navigation systems," Mr. Martha said. 3. Outselling the competition: Mr. Martha expects the Mazor spine robot to "continue to meaningfully outsell" Medtronic's closest com- petitor, Globus Medical, in the spine space. Zimmer Biomet 4. Partial Knee robot: e first procedure with the Rosa partial knee system was re- cently completed, according to CEO Bryan Hanson, who also indicated "strong market demand" in the Rosa platform since the end of 2020. "Given our market share in partial knee, the partial application is only going to serve to bolster that going forward." 5. Rosa Hip: Zimmer Biomet said it ex- pects to launch Rosa Hip in the second half of 2021. e company is seeking to approve the robot for the direct anterior approach to hip replacement, "which we know is the fast- est growth subcategory at hip right now," Mr. Hanson said. 6. Building on robotic sales: Mr. Hanson stressed that the most important factor about robotic revenue isn't the quarter that the sys- tems are placed; "it's the tailwind that they create on a go-forward basis because now you've got an opportunity to be able to build revenue around those robotic systems." Stryker 7. Mako sales: Stryker's plan for Mako robots hasn't changed since the pandemic began, and sales are increasing, CEO Kevin Lobo said. About 50 percent of the company's ac- counts have new soware for the systems to accommodate hip replacement as well as knee surgery. 8. Competition: Stryker is encouraged by its first-quarter performance and other competi- tive robots, such as Johnson & Johnson's Velys or Zimmer Biomet's Rosa, "haven't slowed us down at all," Mr. Lobo said. "If anything, what they've done is they've increased the valida- tion that robotics are going to stay." NuVasive 9. Room for growth: NuVasive CEO Chris Barry projected that roughly 25 percent of spine surgeries today are performed with navigation technologies, but it will still take more time for the market to grow. "We say plus or minus 15 percent of operating rooms have a robotic system installed today. And in that subgroup of operating rooms, utilization is still relatively low." n CEO pay for large spine, orthopedic companies By Laura Dyrda E xecutives at the top orthopedic and spine device companies receive millions of dollars in total com- pensation, according to proxy statements filed with the U.S. Securities & Exchange Commission. Salary.com compiles information for executive pay based on the SEC reports. Here is the compensation of top ex- ecutives from orthopedic and spine devices companies in 2019 and 2020. The asterisk denotes 2019 data, the most recent data available. 1. Alex Gorsky, chair and CEO of Johnson & Johnson: $23.1 million 2. Kevin Lobo, chair and CEO of Stryker: $15 million* 3. Bryan Hanson, CEO of Zimmer Biomet: $11.2 million* 4. Robert Palmisano, president, CEO and executive direc- tor of Wright Medical Group: $7.3 million* 5. Geoffrey Martha, CEO of Medtronic: $6.3 million 6. J. Christopher Barry, CEO of NuVasive: $5.4 million Mr. Hanson gave up 100 percent of his salary in April 2020 to curb the financial effect of COVID-19 on the company, as revenue dropped. Mr. Lobo also took a 50 percent pay cut in April 2020 amid the pandemic. n