7. Procept Biorobotics Corp. (NASDAQ:PRCT)
Short % of Shares Outstanding As of August 30: 11.59%
Number of Hedge Fund Holders: 21
Procept Biorobotics Corp. (NASDAQ:PRCT) is a surgical robotics company, focused on developing transformative solutions in urology globally. Its innovative robotic platform utilizes AI-powered algorithms to enhance surgical precision, minimize tissue damage, and improve patient outcomes. The company’s flagship product is the AquaBeam Robotic System, designed for minimally invasive urologic surgery, particularly for treating benign prostatic hyperplasia (BPH).
Total revenue in Q2 2024 increased 61.17% year-over-year to $53.35 million, with the US revenue growing 59% to $47.7 million. The company sold 47 AquaBeam Robotic Systems at an average price of $378,000, generating US system revenue of $17.8 million (up 20% from the second quarter of last year). The US handpiece and consumable revenue grew 101% to $27.3 million.
This growth was driven by strong US system sales, increased utilization of existing systems, as well as record international revenues. The company ended this quarter with 400 US systems installed, a 72% increase year-over-year. The US monthly utilization grew by 15%.
Procept BioRobotics Corp. (NASDAQ:PRCT) is actively engaging with hospital CFOs, who are becoming more receptive to investing in its robotic system. The rising demand from patients and proactive urologists is prompting hospitals to prioritize this technology to stay competitive.
During this year, Procept BioRobotics Corp. (NASDAQ:PRCT) initiated enrollment for its first Investigational Device Exemption (IDE) study, PRCT002, which focuses on localized prostate cancer. This FDA-approved single-arm study aims to evaluate the safety and effectiveness of Aquablation therapy in 20 patients with grade Group I and II prostate cancer.
Between late March and June, the company also received positive coverage policies from Blue Cross Blue Shield of Arkansas and Louisiana, which collectively cover approximately 1.5 million lives. These developments are expected to enhance the utilization of Aquablation therapy in treating prostate cancer. Additionally, a focus on AI-driven technology enhances the efficacy of Aquablation therapy.
Procedure growth is fueled by the influx of new surgeons and impressive retention rates exceeding 90%. This enables the company to concentrate on training these new professionals effectively. Furthermore, strategic initiatives such as product development, partnerships, and market expansion are anticipated to enhance the company’s competitive position in the industry.
NCG Small Cap Strategy stated the following regarding PROCEPT BioRobotics Corporation (NASDAQ:PRCT) in its Q2 2024 investor letter:
“PROCEPT BioRobotics Corporation (NASDAQ:PRCT) is a medical device company that has developed and is on the market with a robotic therapy for the treatment of BPH (benign prostatic hyperplasia). We believe PRCT has significant growth opportunity by not only taking share in the existing BPH market but by expanding the number of BPH patients treated each year and expanding into new indications, such as prostate cancer treatment, over time.”
