Intuitive Surgical, Dextera To Co-Develop Surgical Stapler For Robotic Surgery

Intuitive Surgical has entered a co-development agreement with Dextera Surgical — formerly known as Cardica — to integrate Dextera’s minimally invasive surgical stapler and cartridge technology into the da Vinci robotic surgical system. This deal is the latest agreement between the two companies, who have been working together since 2010.

In January, the FDA approved an expanded indications list for Dextera’s MicroCutter XChange, touted as the world’s smallest-profile articulating surgical stabling device. With the additions of open and minimally invasive urologic, thoracic, and pediatric surgical procedures, the MicroCutter covers the same indications as had been previously approved in the E.U. , remarked Julian Nikolchev, president and CEO of Dextera. Dextera changed its name from Cardica to reflect this expansion in indications beyond cardiovascular surgery.

Not long after the FDA’s determination in January, Dextera amended its licensing agreement with Intuitive Surgical.  In 2010, Dextera granted Intuitive Surgical exclusive license to its intellectual property — which includes tissue cutting, stapling, and clip appliers — for any indication involving surgical robotics, in exchange for a $12 million equity investment.

The amended agreement allowed for the co-development of MicroCutter for the DaVinci system, provided that the stapler passed a six-month feasibility study, which it has successfully completed. Under terms of the joint development agreement, Intuitive will work on improvements to the stapler, while Dextera focuses on the stapler cartridge.

“This partnership with Intuitive Surgical is a significant step in the progress we have achieved in enhancing and expanding the long term opportunity of the MicroCutter technology,” said Nikolchev in a press statement.  “Intuitive Surgical is a leader in advancing robotic and minimally invasive surgery, and we believe Dextera and MicroCutter technology will have a strong role to play in these types of procedures in the future.”

A recent RNR market research report estimates that the surgical robotics market will be worth approximately $20 billion by 2021, and the report named Intuitive Surgical as the clear market leader while acknowledging an increasingly competitive market for the “emerging standard of care.”  The surgical robotics segment currently includes investments from Medtronic, J&J, Verily, Smith & Nephew, and Stryker, as well as many smaller startups.

In the face of growing competitive pressure, Intuitive CEO Gary Guthart told investors on a recent earnings call that the company intends to focus its attention on expanding the da Vinci system’s indications to include general and thoracic surgery, and plans to invest in advanced instrumentation, analytics, and market development.

Bob DeSantis, SVP of Instrument Engineering at Intuitive Surgical, remarked that a co-development program with Dextera will help expand the da Vinci System’s capabilities.

“For more than 20 years, we have focused on delivering high-value solutions that improve surgical outcomes,” said DeSantis. “Working to integrate MicroCutter technology and expand our stapling product offerings will only enhance that effort.”