Just in case you wondered how Surge-on Medical makes money, look no further. We do not solely rely on the unique surgical instruments we are developing. In fact, our patented platform technology enables us to have multiple revenue streams we would like to share with you.
So, let’s take a look at Surge-on Medical’s business model that is built on three pillars, namely product sales, IP licenses, and contract research.
The most obvious revenue stream is our product portfolio. The current (and ever-expanding) product pipeline consists of two hand-held instruments, plus we are working on a surgical robotic system and a VR training module:
1) With the Steerable Punch, we are tackling arthroscopy, a field with an entry market of EUR 273 million.
2) The Steerable Grasper, on the other hand, is the first multi-steerable instrument of our advanced laparoscopic surgery line. The functional models of our Steerable Grasper for laparoscopy have been successfully tested in cadavers and the Steerable Grasper will be further developed and tested in 2020. The entry market here amounts to EUR 1.8 billion.
3) This brings us to the field of robotic surgery and the Portable Laparoscopy Robot System (PoLaRS) we came up with, the first portable and modular surgery robot that also comes at a low cost. On top of that, we are developing a virtual reality training system for robotic surgery, the interactive PoLaRS-VR training module (this is what PoLaRS-VR training is all about). We’ll continue with the research and development of PoLaRS and testing of the PoLaRS-VR in 2020-2021. The entry market here totals EUR 3.2 billion.
Sales are conducted mainly through international distributors, but also through direct sales to hospitals. We have sold the first demos at full price and multiple distributors are ready to add our products to their portfolio. For example, the Steerable Punch replaces up to ten conventional pre-bent instruments used in arthroscopic surgery and sells for 2,500 EUR apiece.
Our strong patent portfolio is also the start of numerous applications in and outside healthcare. We have the first companies interested in obtaining non-exclusive licenses for specialized applications. Especially for the robotic area, our steerable, cable-free and cleanable surgical instruments are particularly appealing since they are designed to comply with the FDA and CE guidelines for cleanable and reusable instruments, and are compatible with the robotic arms of current surgical robots.
To increase the product portfolio, leverage the IP license income, and stay close to market developments, Surge-on Medical can conduct contract research for strategic partners. Through contract research, we are already making revenues in the US. Do you have an application in which our cable-free steerable technology would add extra value? Get in touch with us and our R&D team will study its compatibility and will adapt it to your needs.
As you can see, diversification will be key to our success. Do you have any questions regarding our business model? Feel free to ask us anything!
(Updated on June 9th, 2020. Links to the funding page removed as funding successfully completed).