Are Intuitive Surgical's Robotic Surgery Devices Injuring Patients? | Market Check-Up, 11/11/13

TL;DR

Shy Biopharmaceutical has acquired rare disease company Veroa with its $4.2 billion bid, gaining access to a drug called Synrise for hereditary angioedema, a rare and serious immune disorder affecting about 18,000 people.

Transcript

with investing analysis on today's Healthcare headlines this is your Market checkup I'm Alison Southwick and I'm joined today by David Williamson Healthcare analyst here at the mle fool today we've got some deals to talk about and also some bad news for intuitive surgical let's get started with shy biopharmaceutical company sh has reportedly beat o... Read More

Key Insights

• 🤝 Shy Biopharmaceutical's acquisition of Veroa is their largest deal ever, providing them with a drug for treating a rare disease.
• 👻 Rare disease companies are in demand due to high prices and limited competition, allowing for significant profits and patient impact.
• 😀 Intuitive surgical is facing concerns over injuries and deaths related to its Da Vinci system, impacting its stock performance.

Questions & Answers

Q: What is the significance of Shy Biopharmaceutical's acquisition of Veroa?

This acquisition is transformative for Shy Biopharmaceutical, as it is their largest deal ever. It gives them access to a drug called Synrise for treating hereditary angioedema.

Q: Why are rare disease companies sought after?

Rare disease companies are attractive due to the high prices they can charge for their drugs and the limited competition in the market. This allows them to generate significant profits while helping a patient population in need.

Q: What impact does the report on intuitive surgical's Da Vinci system have on the company?

The report highlights an increase in injuries and deaths related to intuitive surgical's Da Vinci system since 2004. While the company argues against an increase in the death rate, the report raises concerns about the company's focus on sales over safety.

Q: What is Novartis' strategy regarding its diagnostic business?

Novartis is shedding most of its diagnostic business to focus on businesses that can compete globally. This aligns with their broader strategy of divesting non-scalable businesses, such as animal health and diagnostics.

Summary & Key Takeaways

• Shy Biopharmaceutical has made its biggest deal ever by acquiring Veroa, a rare disease company, for $4.2 billion.

• Veroa brings a drug called Synrise, which generates about $400 million in revenue and complements Shy Biopharmaceutical's existing product for treating flareups.

• Rare disease companies are in high demand due to high prices and limited competition in the market.