Background of TransEnterix
"TransEnterix is developing SurgiBot, a patient side robotic surgery platform that utilizes a single incision about the size of a quarter to conduct a broad range of surgical operations. SurgiBot allows surgeons to achieve internal triangulation with true left/right hand instrumentation, receive tactile feedback, and easily manipulate tissue and organs in a way that builds upon the laparoscopic techniques surgeons are already familiar with. SurgiBot will cost roughly 75% less than Intuitive Surgical's da Vinci System, and will have a much smaller footprint, allowing easy transportation between operating rooms. These features and more give TransEnterix a significant competitive advantage in the rapidly growing robotic surgery market as SurgiBot signficantly benefits hospitals, surgeons, and patients when compared to the current market offerings."
Management estimates that mature sales reps can sell 5-10 SurgiBots per year, which equates to each sales rep generating $2.5M-$5M in annual revenue. This figure does not include the recurring revenue generated from the annual service fee and disposable instruments.
TransEnterix has had two sales reps in place since early 2014, and CEO Todd Pope indicated that they plan to hire more during the second half of 2015. The company plans to have 15 sales reps ready for initial launch, and thinks 30 can cover the entire U.S."
"We think the large teaching institutions that are pretty well seated today with robotics are very interested in SurgiBot, and we think the first 50 sales will have good representation from that side." --CEO Todd Pope