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Speaker 1: A robotic assisted surgery is on the rise around the world.

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Speaker 1: We've talked about before about the soft tissue robots and

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Speaker 1: so on. It's another type of surgery that is benefiting

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Speaker 1: from the use of robotics is now orthopedic surgery. So

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Speaker 1: you want to think about your hip replacements here And

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Speaker 1: Deborah Lamby from mil Fed Asset Management is with us. Now, Hey, Deborah, Hi,

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Speaker 1: how are you well? Thank you? So why are orthopedic

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Speaker 1: robots becoming increasingly important in healthcare?

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Speaker 2: So orthopedic robots there are particularly useful and joint replacements, and

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Speaker 2: these are on the rise due to aging populations that

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Speaker 2: we're seeing around the world. And so in fact, the

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Speaker 2: number of total new replacement surgeries globally is expected to

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Speaker 2: grow significantly by around six percent per year over the

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Speaker 2: next decade. And because of this, innovations that make surgeons

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Speaker 2: more efficient and also improve patient outcomes are becoming increasingly important.

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Speaker 1: And who are the main players here?

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Speaker 2: So Orthopedic robots have been around since the early two

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Speaker 2: thousands and Striker is the first company to bring its

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Speaker 2: robotic system, which is called Maco, to market, followed by

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Speaker 2: zim and Biomet a number of years later. In twenty

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Speaker 2: nineteen with their robot, which is called Rosa, and while

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Speaker 2: there are some differences between their robots, broadly, before surgery,

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Speaker 2: they work as tools to assist surgeons with preoperative planning

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Speaker 2: by creating detailed three dimensional images of the patient's anatomy,

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Speaker 2: and during surgery they assist with precision by providing real

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Speaker 2: time feedback and using sensors to guide the surgeons instruments.

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Speaker 2: And they also assist with precise placement of implants, which

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Speaker 2: is really important.

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Speaker 1: Yeah, I mean this seems like pretty obvious benefits. Are

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Speaker 1: there other benefits as well of using it?

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Speaker 2: Also, studies have actually shown that robotic assisted all the

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Speaker 2: pedic surgeries often lead to improve patient outcomes, and so

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Speaker 2: that includes better alignment of the implants. So, for example,

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Speaker 2: the artificial knee joint is aligned better with the bones

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Speaker 2: on each side of the artificial joint interestingly reduced post

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Speaker 2: operative pain for patients because cuts can be smaller and

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Speaker 2: more precise, and then also patients actually recover faster from them,

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Speaker 2: so kind of in summary, they make sure that the

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Speaker 2: implants are positioned with maximum accuracy, which leads to better recovery,

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Speaker 2: better long lasting results, and pure complications for patients.

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Speaker 1: Fascinating how commonly these used around the world, and do

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Speaker 1: we also have them here in New Zealand.

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Speaker 2: Yeah. So, globally, Rosa and Maco robots have assisted in

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Speaker 2: well over a million joint replacement surgeries combined, which sounds

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Speaker 2: like a really big number, but if you look at

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Speaker 2: the total proportion of knee and hip replacements that are

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Speaker 2: done using robotics, that's actually still quite low, so around

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Speaker 2: seven percent for hips and fifteen percent for knees done

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Speaker 2: with robotic assistance, but that has for us increased rapidly,

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Speaker 2: so by twenty thirty it's expected that around twenty percent

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Speaker 2: of knee replacements globally will be robotic assisted and almost

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Speaker 2: thirty percent of hip replacements, So significant growth opportunity ahead.

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Speaker 2: And while having a robot assist in your orthopedic surgery

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Speaker 2: does sound very futuristic, we absolutely do already have them

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Speaker 2: here in New Zealand. So in twenty seventeen, the first

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Speaker 2: robotic assisted knee replacement surgery was done in north Shore

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Speaker 2: Hospital so here in Auckland with Strikers Maco robot and

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Speaker 2: since then we've seen robots placed and actually a number

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Speaker 2: of different hospitals across the country.

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Speaker 1: That's fascinating stuff. So how are the shares are these

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Speaker 1: companies performing.

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Speaker 2: Then, and so this is interesting because there's quite marked divergence.

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Speaker 2: So Shares and Striker this year, for example, have done

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Speaker 2: really well, so they've generated thirty percent return for investors,

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Speaker 2: whereas shares and Zimmer are actually down around ten percent

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Speaker 2: this year on the back of issues with production, delayed

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Speaker 2: shipments and market share loss to Striker. And then if

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Speaker 2: you zoom out over the past decades, Striker has outperformed

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Speaker 2: the S and P five hundred and generated a return

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Speaker 2: of around sixteen percent, so ahead of the S and

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Speaker 2: P five hundred is return of around twelve where as Zimmer,

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Speaker 2: on the other hand, has been a massive underperformer. It's

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Speaker 2: gone through a period of mismanagement, it's struggled to compete

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Speaker 2: with Striker for market share, and if you look back

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Speaker 2: to twenty fifteen, basically Zimmer shares, if you'd owned them

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Speaker 2: from then till now, have generated no return for investors.

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Speaker 2: So even though it's a company in a really interesting space,

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Speaker 2: that hasn't actually translated to attractive shareholders returns. So it

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Speaker 2: just shows how important it is for investors to be

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Speaker 2: really discerning with their investments.

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Speaker 1: Isn't it, Debrah, thanks very much, really appreciated. That's Debrah

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Speaker 1: lamby Milfed Asset Management. For more from Hither Duplessy Allen Drive,

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Speaker 1: listen live to News Talks it B from four pm weekdays,

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Speaker 1: or follow the podcast on iHeartRadio