Mazor Robotics (NSDQ:MZOR) today released preliminary sales data for its 3rd quarter, with purchase orders for 25 of its systems, including pre-orders for its Mazor X robotic spinal system, and revenue of $7.5 million.
The company’s Mazor X robotic spinal surgery system is designed to combine analytical tools, precision guidance, optical tracking and intra-operative verification into a single, spinal surgical aid system. The system is slated to launch during the North American Spine Society’s annual meeting in Boston later this month, the Israeli company said.
The 25 systems the company announced were purchased include 3 Mazor X pre-orders fro U.S. customers, 4 Renaissance systems from U.S. customers, 3 Renaissance systems for international customers and 15 Mazor X systems for Medtronic (NYSE:MDT) as part of a strategic deal between the companies.
Deliveries of U.S. Mazor X systems are slated for the 1st quarter of 2017,
“The market’s response to the Mazor X is exceptional, exceeding our early expectations. Customers who first experience the Mazor X at our training centers are quickly realizing the increased benefits of the system and they have already placed pre-launch orders. Mazor’s expanded portfolio of products, which now includes both the Mazor X and Renaissance systems, is responsible for the record number of purchase orders we received in the third quarter. As we move into the fourth quarter, we expect to build our momentum in the market as the Mazor X is launched, maximize our presence at NASS and our strategic partnership with Medtronic continues to be implemented,” CEO Ori Hadomi said in a prepared statement.
Mazor said it initiated a policy to allow new Renaissance system customers to exchange the devices for the Mazor X following its launch, with revenue from system exchanges deferred until Mazor X orders are supplied or the exchange option expires.
As previously reported, the Company recently implemented a policy enabling new Renaissance system customers to exchange to the Mazor X following the launch. Therefore, revenue from system sales with exchange option will be deferred until the Mazor X orders are supplied or the exchange option expires. The Company expects total third quarter revenue, including system sales and recurring revenues, to be approximately $7.5 million.
Despite the good news, Mazor stocks dipped 2.8% in trading today, closing at $25.16.
In August, Maxor said that the unveiling last month of its Mazor X robot-assisted spine surgery platform triggered the 2nd step in a 3-stage equity deal with Medtronic.
Medtronic paid $20 million for a 3.4% stake in Mazor at $21.84 apiece, the trailing 20-day average for MZOR shares, the Caesarea, Israel-based company said. It’s part of a 2-stage deal struck with the world’s largest pure-play medtech maker back in May.
The 1st phase of the deal will put 15 Mazor systems in Medtronic’s hands this year and makes Medtronic Mazor’s sole partner for developing and commercializing robot-assisted spine surgery devices.