Intuitive Surgical to expand to new European countries; analysts have Mexico questions

The Da Vinci SP provides 360º of anatomical access and delivers an articulating 3DHD endoscope and three wristed instruments through a single port. | Source: Intuitive Surgical

Intuitive Surgical Operations Inc. yesterday announced that it plans to establish a direct presence in Italy, Spain, and Portugal.

The surgical robotics leader also plans to expand into Malta, San Marino, and associated territories by acquiring the distributors of its da Vinci and Ion systems in those countries.

Intuitive entered into an agreement with current distributors ab medica, Abex, Excelencia Robotica, and their affiliates. Subject to regulatory approvals, the agreement would enable the company to purchase those distributors’ businesses related to its products.

Sunnyvale, Calif.-based Intuitive said it expects the deal to close in 2026, following the receipt of approvals and the meeting of closing conditions.

“Intuitive is excited to continue to invest in the significant opportunity to bring safe, minimally invasive care to more patients across Europe,” stated Gary Guthart, CEO of Intuitive Surgical. “Having a direct presence in Italy, Spain, Portugal, Malta, and San Marino, and associated territories allows us to deepen our understanding of unique customer needs in these countries.”

Once the company closes the deal, it will wholly own the da Vinci and Ion business of the three distributors. It plans to integrate business operations into its European commercial and marketing organization. Dirk Barten, Intuitive senior vice president and general manager, leads that unit.

“Intuitive is grateful for the years of strong business and dedication these companies have provided—their leadership has helped establish robotic technology with physicians and their patients in Europe,” said Barten. “We look forward to integrating these teams upon deal closure. Developing direct relationships with customers in these countries is critical for building greater patient access to minimally invasive care.”

Last week, Intuitive announced preliminary fourth-quarter results that highlight significant da Vinci surgical robot procedure growth. Shares of the company rose nearly 5% to $565 apiece in early morning trading on Jan. 15 following the release of the preliminary results.

It also reported 17% growth in worldwide da Vinci-assisted procedures in 2024. For the fourth quarter of 2024, that growth totaled 18%. Intuitive Surgical said it anticipates 13% to 16% procedure volume growth for da Vinci in 2025 as well.

Analysts question Intuitive reliance on Mexico

Away from Europe, analysts raised questions about another international unit belonging to Intuitive Surgical.

BTIG analysts Ryan Zimmerman and Iseult McMahon asked what potential tariffs under the new Trump Administration would mean for Intuitive. (Read more about the potential impact of the Trump administration on medtech here.)

Pres. Trump has called for 25% tariffs on goods coming to the U.S. from Canada and Mexico on Feb. 1. The analysts noted that it could prove a negotiating tactic for other initiatives, but they questioned the earnings per share (EPS) impact increased tariffs might have on Intuitive, which has a manufacturing facility in Mexicali, Mexico.

Zimmerman and McMahon said that around 90% of the company’s instrument and accessory product production takes place there.

However, the analysts acknowledged that they didn’t know if tariffs would apply to all products coming out of Mexico for Intuitive. They questions if they would apply just to products shipped back and sold in the U.S. If so, they said it would reduce the exposure to around 70% of the estimated impact.

Based on their assessment, the BTIG analysts estimated up to an incremental 6% EPS headwind for 2025. If the mitigations related to products sold in the U.S. apply, they said they expect around 4.2% headwinds. 

Zimmerman and McMahon said they plan to update their model when Intuitive Surgical releases its fourth-quarter earnings on Jan. 23.

Editor’s note: This article was syndicated from The Robot Report sibling site MassDevice.

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