MAKO Surgical Corp. (NASDAQ:MAKO.DL)

CAPS Rating: No stars

Mako makes a robotic surgical system for knee and hip arthoplasty procedures.

Recs

2
Player Avatar HealthcareGuy (99.47) Submitted: 6/30/2011 9:10:02 AM : Outperform Start Price: $15.45 MAKO.DL Score: +64.22

2011 or 2012 P/B, P/S, and FCF evaluation is as relevant for MAKO as it is for DNDN, HGSI, or any other early stage biotech company with an approved product with multi billion dollar sales potential that is just starting their launch. Hip replacement is a $6B market, where traditional procedures lack the precision of MAKOplasty, and as a result do not last as long and have inferior users experiences. At just $1.15B EV with a very attractive razor/ razor blade model, MAKO in my estimation is still a multi bagger from here and will most likely not remain public too much longer, as large cap med tech companies have a much larger appetite for M&A than their more talked about big pharma counterparts (who can always hedge themselves by doing sales partnerships instead).

Has MAKO's stock gotten ahead of itself for the near term? Probably. But the only real potential negative catalyst I see here is the announcement from another larger otho company that they will try to enter the robotics space (it will most likely be SYK, if anyone). So given the volatility in the name, you can make good money on both the long and short side depending on the day, fundamentally I still view this stock as cheap, given the scarcity value of the product and market opportunity, and the fast approaching launch of the new Hip application (company has said 2H 2011).

Member Avatar Dawgpac (< 20) Submitted: 12/18/2011 10:03:55 PM
Recs: 1

Good points. Others to remember are that Dr. Frederic Moll, a Co-Founder of Intuitive Surgical, also co-founded MAKO and sits on their Board of Directors. Yes, there are others circling the orthopedic robotic surgery space, but MAKO's moat is wide as chief (through acquisition) among their many patents is a very important one granting them exclusivity regarding robotic orthopedic surgery utilizing haptics (tactile feedback). A necessity for any surgery let alone robotic surgery involving ortho.

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