Summary of the Conference Call on Orthopedic Surgical Robots Industry Overview - The domestic orthopedic surgical robot market is in its early stages with nearly 20 participating brands, but the installation volume is limited, with approximately 30 spinal robots, a few dozen joint robots, and only one or two trauma robots installed annually, indicating a very low market penetration rate compared to laparoscopic robots [1][2][15]. Key Points and Arguments - **Complex Procurement Process**: The procurement decision-making process for orthopedic surgical robots is complex and time-consuming, typically taking about two years. It involves project initiation, budget approval, and tendering processes, with terminal prices usually in the range of several million RMB [1][3][4]. - **Patient Attitudes**: Patients generally have a positive attitude towards orthopedic robots, believing they provide more precise and safer surgical experiences. However, the immature fee structure and lack of comprehensive insurance coverage for these technologies create economic pressure on hospitals [5][6]. - **Cost Comparison**: The surgical costs for orthopedic robots are significantly higher than traditional surgeries, with self-pay amounts varying widely across regions. For instance, hospitals in Jiangsu and Zhejiang charge around 35,000 RMB, while others may charge between 20,000 RMB to several thousand RMB [8][9]. - **Price Trends**: The terminal price for spinal robots is approximately 11 million RMB, while joint robots can cost around 12 million RMB for a full set. There has been a noticeable decline in prices over the past few years, with spinal robot prices dropping from around 16-17 million RMB to about 11-12 million RMB [10][12]. - **Market Penetration**: The penetration rate of orthopedic surgical robots in China is extremely low, with only a few thousand surgeries performed using these robots compared to over 300,000 total orthopedic surgeries annually. In contrast, international penetration rates are reported to be between 10% to 20% [15]. - **Commercialization Challenges**: The slow commercialization speed of orthopedic surgical robots compared to laparoscopic robots is attributed to their narrow range of indications and lack of strong policy support, unlike laparoscopic robots which benefit from broader applications and guaranteed procurement tasks [15][16]. - **Future Revenue Models**: The business model for orthopedic robots could evolve to drive revenue growth through consumables, but currently, equipment sales dominate revenue streams, accounting for about 90% of income, with consumables contributing only 10% [16]. Additional Important Insights - **Technological Gaps**: Domestic spinal robot technology lags behind international leaders like Medtronic in areas such as preoperative planning and surgical navigation. However, domestic brands have advantages in cost control and maturity in orthopedic implant technology in the joint robot sector [17][18]. - **International Sales**: Companies like MicroPort have performed well in international markets due to their established global operations and product lines, allowing them to leverage existing sales channels for orthopedic robots [20][21]. - **Future Innovations**: While current spinal robot technology meets clinical needs with precision of 0.1 mm, future innovations may focus on operational processes rather than significant technological breakthroughs. In contrast, joint robot development may see more substantial advancements in soft tissue handling techniques [25][27]. This summary encapsulates the key insights from the conference call regarding the orthopedic surgical robot industry, highlighting the current market dynamics, challenges, and future opportunities.