Medical Robots: Invest in This Billion-Dollar Industry Before It Explodes
- Robotic technology is reshaping modern health care, with the medical robotics market projected to become a $22 billion industry by 2027 — expanding by an annual rate of nearly 15%.
- One investment tool to tap this growing market has risen 8% in the past four months.
Twenty years from now, we’ll probably look back at this time as “the age of the startup.”
Sure, startups have been a huge part of our economy for a long time, but today is different. We’re at the point where companies are reaching billion-dollar valuations just a couple of years after they’re founded.
And through technology, that trend is affecting all industries. Fifty years ago, you never would have dreamed of assembly line workers in a Ford factory wearing robotic suits.
Nor would you have imagined the use of magical, holographic 3D “smart glasses” in training programs to teach future engineers how to fix Airbus airplanes.
And right now, there’s another industry that this startup wave is revolutionizing: health care.
Last week, I wrote about the benefits of robotic surgery. The technology has been around for decades, but it has significantly evolved in recent years. Now, big investors are starting to pay attention. This is a signal that this industry is really about to take off.
The robotic surgery system that I examined last week is da Vinci, the only big player in the field right now. But a bunch of other companies are using this technology in many different ways. I believe they’re going to create a lot of competition within this newly formed industry. And of course, competition will spur even more innovation.
One robotic surgery startup that’s been making headlines recently is Auris Health Inc. One of the company’s co-founders is the same person who founded Intuitive Inc., the firm that created the da Vinci robot. So maybe it’s no surprise that Auris has quickly raised the bar over its short 12-year life.
Auris spent six years creating its Monarch Platform, which can detect and remove lung cancer tumors. Auris’ crowning achievement came this past March, when Monarch was cleared by the U.S. Food and Drug Administration (FDA) to screen for lung cancer. This was a huge milestone for a couple of reasons.
First, lung cancer is the deadliest form of cancer in the United States. And secondly, cancer has a giant rate of misdiagnosis. It’s even estimated that about 40,000 lives are lost each year because of this. Lung cancer is among the most commonly misdiagnosed.
And this is just the tip of the iceberg. In fact, a new analysis by Markets and Markets projects the medical robots market will become a $22 billion industry by 2027 — expanding by an annual rate of nearly 15%.
Tap Into the Automation of Modern Health Care
As far as modern medicine has come, the process for diagnosing lung cancer is still fully manual. And of course, it’s fully susceptible to human error.
Because the lungs are notoriously intricate and tough to work on, this can lead to potentially terrible consequences.
However, with Auris’ Monarch Platform, surgeons can be much more precise by controlling flexible and completely steady robotic “arms” to perform procedures. The platform also uses a camera, like the da Vinci. It’s built specifically to navigate tiny passageways and give surgeons a clear view that they would never have otherwise.
Auris’ technology has been so transformational that it’s attracted attention from some of the biggest medical companies in the world. And back in February, the company was bought out by Johnson & Johnson for $3.4 billion.
Keep in mind that at that time, Auris didn’t even have FDA clearance to use its product. This shows that companies can already see the importance of this technology. And they’re ready to spend big on startups like Auris to get a leg up on the competition.
I’ve seen similar deals like this in the recent past. Like when Stryker bought Mako Surgical for $1.7 billion back in 2013. More recently, Medtronic acquired Mazor Robotics, also for $1.7 billion.
Stryker and Medtronic are industry titans worth a combined $209 billion. They realize that keeping up with the “new” requires investing huge amounts of money in state-of-the-art technology. Of course, these companies wouldn’t spend billions of dollars on something if they didn’t expect a huge return going forward.
Invest Like These Industry Titans for Massive Gains
You can invest like these companies, just in a slightly different way. Rather than buying part of a private company that requires hundreds of thousands of dollars to invest in, you can buy the companies that are doing all the work for you.
To do so, I’d recommend buying shares of Goldman Sachs Motif Human Evolution ETF (NYSE: GDNA). This new exchange-traded fund (ETF) holds shares of the companies looking to add robotic surgery technology wherever possible. In only four months of operation, the ETF’s value has already risen 8%.
It even includes shares of the three companies I’ve mentioned: Johnson & Johnson, Medtronic and Stryker. As these companies keep buying up new technology, you’ll continue to benefit.
Editor, Rapid Profit Trader