Mazor Reports 4Q17, 2017 Revenue

Mazor Robotics (MZOR) affirmed its preliminary reports for 4Q17 revenue of US $19.1MM, +36.4% from 4Q16, and 2017 revenue of $64.9MM, +78.7% vs. 2016. This represents the company’s highest revenue quarter for 2017.

In 4Q17, MZOR logged 27 purchase orders, including 24 orders for Mazor X systems (23 from Medtronic). For the full year, 73 orders included 64 for Mazor X and 9 for the Renaissance system.

Leadership notes that the cumulative number of Mazor X orders received at 16 months post-launch was 98, with >30,000 procedures performed and 220,000 implants placed, to date.

Commenting on the MZOR/Medtronic interplay, the capital and clinical salesforces that migrated to Medtronic are now fully integrated. MZOR continues its sales focus on Renaissance, with an eye to targeting ASCs.

In early 4Q, MZOR published study results showing that surgeries performed with the Renaissance Guidance System, using Mazor Core™ technology, yielded a five-fold reduction in surgical complications and a seven-fold reduction in revisions vs. freehand-based, minimally invasive lumbar fusion.

For 2018, performance will be chiefly driven by increased revenues from the installed base of systems. Globally, the company ended 2017 with 188 systems installed worldwide, up 16 units from 172 at the end of 3Q. Medtronic will push to expand sales internationally, in 2018, starting in the EU and moving to Asia.

Of note, 4Q was the first full quarter of sales for Globus Medical’s Excelsius GPS surgical robot; analysts assume placement of ~11 units in the quarter. This competition is perceived as a rising tide that lifts all ships while educating the market, with CEO Ori Hadomi saying, “Already and due in large part to Mazor’s effort, the question regarding robotics has shifted from ‘do I need a robot?’ to ‘how can robotics do more for me?’ We are committed to staying at the forefront of this field.”

Sources: Mazor Robotics Ltd., ORTHOWORLD Inc.