1 00:00:02,520 --> 00:00:09,760 Speaker 1: Bloomberg Audio Studios, Podcasts, radio News. You're listening to Bloomberg 2 00:00:09,840 --> 00:00:14,400 Speaker 1: Business Week with Carol Masser and Tim Stenoveek on Bloomberg Radio. 3 00:00:14,800 --> 00:00:16,480 Speaker 2: Hey, we got a few developments from the world of 4 00:00:16,560 --> 00:00:19,159 Speaker 2: robotic surgery. After more than a decade of research in 5 00:00:19,239 --> 00:00:22,640 Speaker 2: years of delays, Jay and J now has a robot 6 00:00:22,840 --> 00:00:26,120 Speaker 2: on the market for soft tissue surgery. That news came 7 00:00:26,120 --> 00:00:31,040 Speaker 2: out yesterday. Meantime, Intuitive Surgical shares we saw them under 8 00:00:31,040 --> 00:00:33,680 Speaker 2: pressure again last week as growth in the use of 9 00:00:33,720 --> 00:00:36,440 Speaker 2: its Da Vinci surgical robots slowed to the weakest pace 10 00:00:36,520 --> 00:00:39,519 Speaker 2: in four years, and its guidance for procedure growth was 11 00:00:39,600 --> 00:00:44,879 Speaker 2: unchanged due to softer US growth in procedures reflected because 12 00:00:44,960 --> 00:00:49,400 Speaker 2: of changes to Affordable Care Acts subsidies. Company also said, 13 00:00:49,400 --> 00:00:49,960 Speaker 2: I thought this was this. 14 00:00:50,159 --> 00:00:52,280 Speaker 1: Is so cool, I mean so interesting. 15 00:00:51,960 --> 00:00:56,440 Speaker 2: Right, Yeah, that US Da Vinci bariatric cases in particular 16 00:00:56,480 --> 00:01:00,920 Speaker 2: experience pressure from patient usage of GLP one weight loss drugs. 17 00:01:01,080 --> 00:01:05,360 Speaker 1: So fewer people are getting bariatric surgery because they're injlps instead. 18 00:01:05,600 --> 00:01:06,399 Speaker 2: That's the read through. 19 00:01:06,600 --> 00:01:08,720 Speaker 1: Okay, Yeah, curious of any of this at this point 20 00:01:08,840 --> 00:01:11,880 Speaker 1: is affecting our next guest back with US doctor Suit 21 00:01:11,920 --> 00:01:15,040 Speaker 1: here Strevostova, chairman, CEO and founder of the US based 22 00:01:15,200 --> 00:01:19,600 Speaker 1: SS Innovations International. It makes medical equipment, it develops surgical 23 00:01:19,720 --> 00:01:22,600 Speaker 1: robotic technologies. It's a six hundred and eighty three million 24 00:01:22,640 --> 00:01:26,040 Speaker 1: dollar market capped with US shares down about forty percent 25 00:01:26,560 --> 00:01:29,080 Speaker 1: this year. He joins US from Fort Lauderdale. Good to 26 00:01:29,120 --> 00:01:30,800 Speaker 1: have you on the program. I think a lot of 27 00:01:30,800 --> 00:01:32,920 Speaker 1: people when they think surgical robotics that they think about 28 00:01:32,959 --> 00:01:36,720 Speaker 1: the Da Vinci machine from Intuitive Surgical. How does your 29 00:01:36,840 --> 00:01:42,240 Speaker 1: product at SS Innovations International differ from the da Vinci 30 00:01:42,480 --> 00:01:43,560 Speaker 1: surgical robot. 31 00:01:44,319 --> 00:01:46,760 Speaker 3: Yeah, a great to starting question. First of all, thank 32 00:01:46,800 --> 00:01:51,400 Speaker 3: you very much for having me so our The SSI 33 00:01:51,480 --> 00:01:55,160 Speaker 3: and MANTES system is different than DaVinci almost at every 34 00:01:55,280 --> 00:01:59,040 Speaker 3: level other than fundamentally to the still a surgical gopod. 35 00:01:59,520 --> 00:02:03,040 Speaker 3: So you know, we can go through some breef comparison 36 00:02:03,120 --> 00:02:07,000 Speaker 3: on the technology open fish console as opposed to the 37 00:02:07,040 --> 00:02:11,960 Speaker 3: immersive and tower up to five arm control from the 38 00:02:12,000 --> 00:02:17,200 Speaker 3: console large open page thirty two working monitor table side 39 00:02:17,240 --> 00:02:19,440 Speaker 3: team also had the same three D view which is 40 00:02:19,480 --> 00:02:23,360 Speaker 3: safer and more efficient. And then a modular design of 41 00:02:23,400 --> 00:02:26,320 Speaker 3: the robotic counts three, four or up to five arms 42 00:02:26,600 --> 00:02:29,520 Speaker 3: and moreover, our system is equipped right from the beginning 43 00:02:29,560 --> 00:02:31,960 Speaker 3: both for telepractoring and tele strategy. 44 00:02:32,160 --> 00:02:34,880 Speaker 1: What about from the perspective of the doctor actually using 45 00:02:34,919 --> 00:02:37,440 Speaker 1: the technology and how difficult it is to train all 46 00:02:37,440 --> 00:02:39,680 Speaker 1: these doctors are used to using so you know certain 47 00:02:39,720 --> 00:02:41,959 Speaker 1: products right now, how do you train the doctors to 48 00:02:42,280 --> 00:02:42,520 Speaker 1: do this? 49 00:02:43,800 --> 00:02:45,560 Speaker 3: Yeah, so we have gone through of course, you know, 50 00:02:45,560 --> 00:02:48,040 Speaker 3: in India we have sold to undred and twenty four systems. 51 00:02:48,480 --> 00:02:51,560 Speaker 3: Almost thirteen thousand cases now have been done, including career. 52 00:02:51,960 --> 00:02:54,359 Speaker 3: So essentially what we've observed the people who are the 53 00:02:54,440 --> 00:02:57,680 Speaker 3: VIC users, it almost takes them anything five to ten 54 00:02:57,760 --> 00:03:00,880 Speaker 3: minutes literally because it's a different like driving a different car. 55 00:03:00,960 --> 00:03:04,600 Speaker 3: So once they I understand the controls same principle essentially 56 00:03:04,919 --> 00:03:09,680 Speaker 3: and controls full controls operating watch in the video. People 57 00:03:09,680 --> 00:03:12,480 Speaker 3: who are non robotic surgeons, it can take them from 58 00:03:12,520 --> 00:03:16,000 Speaker 3: twenty to thirty minutes to learn the machine. Then of 59 00:03:16,040 --> 00:03:18,480 Speaker 3: course they have to go through certain practice and they 60 00:03:18,600 --> 00:03:21,120 Speaker 3: just to get used to things, just like Davici. You know, 61 00:03:21,160 --> 00:03:23,200 Speaker 3: there is a learning carve and so there's a learning 62 00:03:23,240 --> 00:03:26,440 Speaker 3: service our sourstem for their novices. 63 00:03:28,000 --> 00:03:30,840 Speaker 2: And you don't sell in the US yet, correct. 64 00:03:31,240 --> 00:03:34,880 Speaker 3: Yeah, so we are actually in the process with USFDA, 65 00:03:35,600 --> 00:03:39,120 Speaker 3: and again our anticipation is by hopefully per porter of 66 00:03:39,200 --> 00:03:43,680 Speaker 3: next year, we will achieve some approval from USFDA. 67 00:03:44,720 --> 00:03:46,920 Speaker 2: Right, I know, this is some of what we talked 68 00:03:46,920 --> 00:03:50,240 Speaker 2: about last year. I am curious what you hear from 69 00:03:50,320 --> 00:03:53,560 Speaker 2: the investment community because as to mention, I mean, you 70 00:03:53,560 --> 00:03:55,680 Speaker 2: think of Intuitive Surgical, right, there are one hundred and 71 00:03:55,680 --> 00:03:58,320 Speaker 2: seventeen billion dollar market cap company, a very known name, 72 00:03:58,640 --> 00:04:03,240 Speaker 2: and you did talk about the distinctions. Do you anticipate 73 00:04:03,280 --> 00:04:06,880 Speaker 2: that the US market is really your growth opportunity because 74 00:04:06,920 --> 00:04:11,200 Speaker 2: I understand your mission is about making robotic surgery more 75 00:04:11,280 --> 00:04:14,800 Speaker 2: accessible to more people and also making it more affordable. 76 00:04:16,160 --> 00:04:18,480 Speaker 3: Yeah, so we have actually achieved that, you know, in 77 00:04:18,640 --> 00:04:23,360 Speaker 3: terms of the pricing, consuming growth and service agreements, et cetera. 78 00:04:23,920 --> 00:04:26,520 Speaker 3: And outside of India we are currently in fourteen country. 79 00:04:27,000 --> 00:04:29,920 Speaker 3: So I think when you think about the growth opportunity 80 00:04:29,960 --> 00:04:34,160 Speaker 3: in USA, absolutely, because our system does every single thing 81 00:04:34,240 --> 00:04:36,919 Speaker 3: that the vincy does and more in terms of the 82 00:04:36,960 --> 00:04:41,880 Speaker 3: capability of US friendly and as features and especialty, including 83 00:04:41,880 --> 00:04:44,520 Speaker 3: part X THO three, and it will be by the 84 00:04:44,560 --> 00:04:46,760 Speaker 3: time you come to US, it will be somewhat less 85 00:04:46,800 --> 00:04:49,520 Speaker 3: than have the pride that of the DV five with 86 00:04:50,080 --> 00:04:52,680 Speaker 3: again better opportunities. So I think we feel that there's 87 00:04:52,720 --> 00:04:56,360 Speaker 3: a great opportunity in US as well once you get 88 00:04:56,400 --> 00:05:01,680 Speaker 3: passive PA and also the whole ambilitary center market. You know, 89 00:05:01,760 --> 00:05:04,360 Speaker 3: our system being modular, the three armed system which is 90 00:05:04,400 --> 00:05:07,120 Speaker 3: a full robard with all bells and results is they 91 00:05:07,160 --> 00:05:10,480 Speaker 3: have a great opportunity for AC and again at an 92 00:05:10,520 --> 00:05:12,440 Speaker 3: affordable price. So I think we'll p only we are 93 00:05:12,480 --> 00:05:16,320 Speaker 3: targeting hospitals and I've been approached by literally every major 94 00:05:16,400 --> 00:05:20,200 Speaker 3: hospital in the country, the big names that you can imagine, 95 00:05:20,440 --> 00:05:22,440 Speaker 3: and also in the US. 96 00:05:22,200 --> 00:05:24,360 Speaker 2: You're saying, you're saying in the US. 97 00:05:24,320 --> 00:05:28,440 Speaker 3: Yeah, that's correct, Yes, yes, yes, I mean the Cleveland Clinic, 98 00:05:28,640 --> 00:05:32,000 Speaker 3: mail Chicago, I mean all the big names. You know. 99 00:05:32,080 --> 00:05:34,760 Speaker 3: Not only they are friends of mine at different levels, 100 00:05:34,880 --> 00:05:38,600 Speaker 3: but they're very interested because the technology now has been 101 00:05:38,640 --> 00:05:42,760 Speaker 3: commercialized at least in India, is clinically validated and safety 102 00:05:42,839 --> 00:05:43,520 Speaker 3: has been proven. 103 00:05:43,960 --> 00:05:47,040 Speaker 2: Doctor Shrivastava, One thing I want to ask you, though, 104 00:05:47,240 --> 00:05:50,360 Speaker 2: investors don't seem to have conviction behind you the time 105 00:05:50,400 --> 00:05:52,600 Speaker 2: when we talked with you in last November, you guys 106 00:05:52,600 --> 00:05:54,599 Speaker 2: were over a billion dollar market cap company. I know, 107 00:05:54,640 --> 00:05:58,720 Speaker 2: it's just one metric, but you're now about six hundred 108 00:05:58,720 --> 00:06:00,719 Speaker 2: and eighty three million in terms of more market cap, 109 00:06:00,800 --> 00:06:03,680 Speaker 2: the stocks down forty percent year today. You know, what 110 00:06:03,720 --> 00:06:06,560 Speaker 2: do you hear from your investor base? Because if you 111 00:06:06,600 --> 00:06:09,760 Speaker 2: guys are just about a year away or so from 112 00:06:09,960 --> 00:06:12,919 Speaker 2: or being in the US market, and it sounds like 113 00:06:12,960 --> 00:06:16,120 Speaker 2: there's support, why aren't investors agreeing with you? 114 00:06:16,680 --> 00:06:19,000 Speaker 3: Yeah? I think first of all is I'm sure you 115 00:06:19,120 --> 00:06:21,599 Speaker 3: know more than anybody else. You know, the stock park 116 00:06:21,760 --> 00:06:23,880 Speaker 3: is whatctuate. I mean, if we look at him two two, 117 00:06:24,520 --> 00:06:26,800 Speaker 3: you know a year ago, you know what two hundred 118 00:06:26,839 --> 00:06:31,040 Speaker 3: plus billion dollarge works now and huge value in their 119 00:06:31,200 --> 00:06:34,120 Speaker 3: lost actuality, and these things happen, I think for variety 120 00:06:34,160 --> 00:06:36,400 Speaker 3: of reagents. Moreover, I think the biggest thing that we 121 00:06:36,480 --> 00:06:39,680 Speaker 3: hear from investor they are waiting for us to get 122 00:06:39,680 --> 00:06:42,839 Speaker 3: the US approval and they want to see US revenues, 123 00:06:42,880 --> 00:06:46,040 Speaker 3: and that is I think primarily and moreover, we were 124 00:06:46,120 --> 00:06:49,599 Speaker 3: like a submarine. We finally have suffaced, and now more 125 00:06:49,640 --> 00:06:52,960 Speaker 3: and more analysts actually are. In fact, I'm here there 126 00:06:52,960 --> 00:06:56,880 Speaker 3: are several interviews scheduled with the known Ennish actually, so 127 00:06:56,960 --> 00:07:01,480 Speaker 3: I think once the coverage becomes available to the investing community. 128 00:07:01,560 --> 00:07:04,640 Speaker 3: I think it's still gradually change, and I think the 129 00:07:04,720 --> 00:07:06,800 Speaker 3: key bottom line is this, really I think they want 130 00:07:06,839 --> 00:07:11,240 Speaker 3: to see us revenues and that's how I think it's well, 131 00:07:11,400 --> 00:07:11,800 Speaker 3: you know, to. 132 00:07:12,280 --> 00:07:14,600 Speaker 1: Add on to that, I mean Intuitive Surgical. It's a 133 00:07:14,680 --> 00:07:17,080 Speaker 1: market cap about clost one hundred and twenty billion dollars. 134 00:07:17,600 --> 00:07:20,520 Speaker 1: You guys are selling billion dollars. Doctor Fred mal who 135 00:07:20,960 --> 00:07:23,000 Speaker 1: was a founder, is a founder of Intuitive Surgical, is 136 00:07:23,040 --> 00:07:26,160 Speaker 1: your vice chair now? He believes in in your products. 137 00:07:26,360 --> 00:07:27,960 Speaker 1: That's it. I would think a lot of people would 138 00:07:27,960 --> 00:07:30,160 Speaker 1: look at that as a huge feather in your cap 139 00:07:30,480 --> 00:07:33,400 Speaker 1: very brightly. Why don't you sell? Why would you sell 140 00:07:33,440 --> 00:07:35,320 Speaker 1: yourself to a company like Intuitive Surgical? 141 00:07:38,040 --> 00:07:40,200 Speaker 3: You know that I cannot answered that on this call. 142 00:07:41,720 --> 00:07:45,880 Speaker 3: I'm sorry, I'll have to reprint that by with the caveat. 143 00:07:46,080 --> 00:07:50,040 Speaker 3: Let's say, if they made a proposal that absolutely we 144 00:07:50,080 --> 00:07:53,160 Speaker 3: cannot review the other public company. It will have to 145 00:07:53,200 --> 00:07:56,440 Speaker 3: be brought up to people born and this seasons will 146 00:07:56,440 --> 00:07:58,200 Speaker 3: be made there. I believe it. 147 00:07:58,320 --> 00:08:00,680 Speaker 2: That all right, So we can assume that there was 148 00:08:00,760 --> 00:08:03,360 Speaker 2: no there's been no proposal yet put before you. 149 00:08:04,680 --> 00:08:08,240 Speaker 3: Well, there have been people who Traggis looked at us 150 00:08:08,320 --> 00:08:10,600 Speaker 3: and again under the NBA and all that things. And 151 00:08:10,720 --> 00:08:12,720 Speaker 3: I'm sure you can appreciate that I cannot get into 152 00:08:12,840 --> 00:08:13,680 Speaker 3: some of those details. 153 00:08:13,720 --> 00:08:15,840 Speaker 2: You do, stay in touch and let us know as 154 00:08:15,880 --> 00:08:19,480 Speaker 2: you move closer your uh in expectations in terms of 155 00:08:19,480 --> 00:08:23,239 Speaker 2: the US market, Doctor Shivastava. He's Chairman, CEO and founder 156 00:08:23,520 --> 00:08:25,560 Speaker 2: of SS Innovations International