Special thought on $TRXC which I believe is the bargain of the century

In science fiction you expected to see robots as part of the futuristic society.  At the extreme, you got android that looked exactly like a human except that it is a robot made of bio-materials instead of artificial intelligence embedded in computer chips inside heavy metal casing that happened to include two arms and two legs to mimic the movement of a human.  Movies such as Bicentennial Man, Aliens, The Terminator, and Blade-runner came to mind.  Perhaps, the robotic soldiers in The Terminator would be a good example of what human expected to see robot to look like in the futuristic society (ok maybe not looking so menacing and dangerous).  The point I’m making is that anything robotic is built into our imagination.

What is your point here?

It’s simple. Anything robotic is the future. And that included robotic surgical assistance. And the more features that the robots have that mimic the human strength, the more effective is the robot.

Scientifically speaking, what so special about the Senhance when compared against the Da Vinci is the feature that supported human touch. Haptic feedback in the Senhance, in my humble opinion, is the most overlooked important feature in the robotic surgical system. I said “overlooked” because I don’t believe stock price is reflecting the true value of this important feature yet.

Why do you say that?

Think about this, human race is blessed with the five senses to improve our chance of survival. And human touch is one of the five senses: Sight (vision), hearing (audition), taste (gustation), smell (olfaction), and touch (somatosensation).  Touch would not be in one of the five senses if it’s not important.  It is VERY IMPORTANT!  Laparoscopic surgeons work best when they can “feel” what they are working on.

Per Dr. Stephan (from 7:55 minutes in the video below*):

“We need haptic. We need the feeling in the suturing.. if the knot is closed or opened.  Haptic is very important to me.”

From 20:38 minutes in the video:

“Here you’ll see the importance of haptic… here you see the suturing of a butterfly… it’s very thin suture… because of the haptic, you feel at once when the knot is closed.”

It is my 2 cents that this haptic feature, from a scientific point-of-view, is the upgrade that will “kick the door open” for the laparoscopic surgeons to try and then embrace the use of robotic surgical assistance.  The beauty of the Senhance is that because it allows hybrid surgery (with open source ports which allow robotic and traditional lap instruments work simultaneously) which gives even the most hesitated laparoscopic surgeon an opportunity to try.  By knowing that he/she could always fall back on the traditional lap instruments, it doesn’t hurt to try the Senhance to see how much more efficient and comfortable to operate from a cockpit WITHOUT the loss of human touch.

Sidebar: Btw, while the doubters/shorts would have us believed that the Senhance is bulky with huge footprint that took up space in the operation room; however, after watching the video above, I realized Senhance might be specifically designed this way so that it provided space for the supporting staffs to surround the patient as in a normal operation.  The heavy base for each surgical arm provided stability and the “long” arms allowed the bases to be “out-of-the-way” so that supporting staffs can surround the patient with ease.  It also creates space for the hybrid surgery mentioned above.

With the availability of haptic feedback, it also opens the door for laparoscopic surgeon to consider the ergonomic benefits:

TRXC_lararoscopic2Source: Dr_Stephan_Senhance_Presentation.pdf

Shoulder pain from performing in an awkward arm position for too long will become a thing of the past.  On the video above, go to 19:30 minutes and you will hear Dr. Stephan mentioned about the elimination of his shoulder pain after using the Senhance robotic surgical system:

“After four or five operations, I’ve pain in my shoulder. That’s normal. Now, I don’t have any pain in my shoulder. I’m sitting there, I’m relaxed. I think that’s the benefit. Relaxed surgeons are better for the patients. That’s my opinion.”

By combining haptic feedback with eye sensing control, reusable instruments, quick docking time, lower per patient cost, and the ergonomic benefits, it’s my humble opinion that the decision to choose Senhance as the laparoscopic surgical assistance become MUCH easier when hospitals and surgeons are comparing the Senhance with the Da Vinci when making their next major robotic surgical system purchase decision.  A comparison that was non-existence before because Da Vinci was the only FDA approved robotic surgical system for the last 17 years.

Below is a list of Senhance advantages I posted last week which I pulled from the presentation:

  1. have haptic feedback
  2. have “3rd hand” via 3DHD vision controlled via eye-sensing
  3. have open view of operating room
  4. perform hybrid surgery with open source ports which allow robotic and traditional lap instruments work simultaneously
  5. use 5mm and 3mm instruments architecture
  6. have Trocar placement like standard laparoscopy
  7. have easy and quick docking time
  8. easy change of instruments without changing trocars
  9. easy and quick patient repositioning
  10. allow 22 reusable instruments (5-10mm) which contributed to responsible economics
  11. have lower per patient cost compared to the Da Vinci system
  12. be compatible with hospitals’ existing technological system
  13. accept other technologies to enhance surgical procedures
    1. Here is an excerpt from 2nd quarter earnings transcript that provided a perfect example:

      Two other factors growing trends in surgery today are the use of Fluorescence Imaging and micro-laparoscopic using 3 millimeter instruments. In our open architecture strategy has allowed us to make tremendous progress this year incorporating these trends in the Senhance experience. In our last Investor call, we discussed our progress with incorporating two leading Endoscopic Fluorescence Technology, the Novadaq Pinpoint imaging system and the Stryker 1588 AIM platform. I’m pleased to report that the Pinpoint Fluorescence system has now been used clinically in conjunction with the Senhance platform in multiple general surgical and gynecologic proceduresThrough this program, speed into perspective, we progressed from validation activities to clinical utilization of the Pinpoint in less than 6 months.

If you go through the list carefully, you may already notice that the Senhance is specifically designed for the benefit of laparoscopy.  Item #6: have Trocar placement like standard laparoscopy is an important clue.  Hybrid surgery is another clue.  Even the placement of the Senhance multiple bases to support the multiple long surgical arms/ports are designed for the benefits of laparoscopy by creating spaces for convenience of surgeons and supporting staffs.  In other words, Senhance is robotic laparoscopy as stated by Dr. Stephan at the beginning of the video (from 1:35 minutes at the video)

“A little bit in my mind, it’s robotic laparoscopy”

I’m not a doctor neither am I a surgeon; but I like to invest in companies that have patents for technologies to change and benefit the future.  It is my humble opinion and my 2 cents that $TRXC’s Senhance robotic surgical system has all the necessary features and improvements to kick the door wide open for laparoscopic surgeons to adopt robotic surgical assistance to make their life more productive, safer, and comfortable.  And IF adoption becomes widespread from laparoscopic surgeons as I’m predicting, $TRXC may as well be the bargain of the century.  And thanks to the doubters and the shorts, the longs are able to buy this stock at the bargain price under $3.

Good Luck and may fortune blesses all who invested in $TRXC.

Thanks for reading.

My 2 cents

*Disclaimer: the quotes from the video was based on my listening attempt; it is best for you to go to the video directly per time stamps to listen since I might hear it wrong or missed something important.

From my camera:

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Categories: Daily trading Journal, trading journal

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6 replies

  1. Great article!… but most important… everything here is true… Congratulations!…

  2. Thank you so much for the time, effort, clarity and thoughtfulness you put into preparing these thoughts Z. I sincerely hope everyone who looks at, hears of, and especially those who choose to invest in Transenterix will read it

    • Hi kmartinez,

      You’re welcome! I enjoy sharing my thought as a way to give back since I also benefit greatly from others who shared their thoughts as well. Of course, writing out my thought also clarified to myself why I chose to invest in the particular stocks I wrote about.

      I appreciate your feedback!
      Z

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