Vicarious Surgical (RBOT) Has Strong Forecast After DEH Merger


On September 15, shareholders of D8 Holdings approved its merger with Vicarious Surgical, a next-generation robotics company. Through the deal, Vicarious will receive nearly $ 220 million in gross cash proceeds, which is less than the initially agreed value as nearly 77.5% of PSPC’s public shares have been repurchased.

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The minimum cash condition for the deal to go through was $ 125 million and the PIPE was increased on September 9 to $ 142 million so that the deal would go through even with the maximum possible buybacks. As Vicarious draws closer to its NYSE debut, investors want to know DEH’s stock forecast after the merger.

Vicarious Surgical, founded in 2014, is a next-generation robotic technology company, which seeks to increase the efficiency of surgical procedures and improve patient outcomes. Its surgical approach uses a combination of proprietary human-like surgical robots and virtual reality to transport surgeons inside the patient to perform minimally invasive surgery.

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Source: Vicarious surgery

The idea for the company’s miniature surgical robots came from Adam Sachs (one of the company’s founders) fascination with the 1966 sci-fi film. Fantastic trip.

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What is the date of the merger of DEH?

The Vicarious Surgical and DEH business combination will close on September 17th. The combined entity is expected to start trading on September 20. The combined company will be listed on the NYSE under the ticker symbol “RBOT”.

Will Vicarious Surgical (RBOT) Shares Increase After Merger?

Vicarious Surgical has a lot of potential. Its technology was the first and only surgical robot to receive breakthrough device designations from the FDA. According to Sachs, the company’s surgical robots are capable of performing surgeries in half the time of their competitors. More importantly, efficiency doesn’t lead to higher price tags.

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According to Forbes, robots cost around $ 1.2 million and are almost half the cost of existing robots. It helps that the company is supported by luminaries like Bill Gates, Vinod Khosla and Eric Schmidt.

The DEH share price jumped nearly 17% on September 16. However, the share price is still not far removed from the DEH listing price. There is a good chance that the stock can get off to a good start after the merger.

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Vicarious Surgical Inventory Forecast

Vicarious Surgical’s inventory forecast will also depend on the speed and extent of expansion of its target market. According to Markets and Markets Research, the global robotic surgery market is expected to grow from $ 6.4 billion in 2021 to $ 14.4 billion by 2026 at a CAGR of 17.6%. Growth is driven by technological advancements in surgical robots, increasing adoption of surgical robots, and increasing funding for medical robot research.

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robotic proxy surgery

Source: Vicarious surgery

Interestingly, while the TAM (Total Addressable Market) is huge, it is currently only penetrated by almost 3%. This represents a huge potential opportunity for Vicarious and its peers like Intuitive Surgical. Vicarious Surgical estimates its revenue to be $ 1 billion by 2027 with less than 1% adoption. Its revenue CAGR from 2023 to 2025 is estimated at 300%, which is well above Intuitive’s 12%.

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However, this nascent niche is not without competition. In fact, Intuitive Surgical has been around for a long time and currently dominates the space. Johnson & Johnson has also entered the market. The company unveiled its surgical assistant robot, Ottava last year. There are other small and large startups that have caused a stir in this segment.

Should we buy DEH before the merger?

Based on its forecast revenue for 2025, Vicarious is trading at EV sales in 2025 of 3.1x, which is well below Intuitive’s 11.1x. While Intuitive is also a good bet to play in this space, Vicarious is just getting started and could offer more growth at a lower multiple, which should be attractive to growth-oriented investors.

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