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IP Interview
Published September 14, 2023

Intuitive Surgical: Selling Da Vinci Systems, Simulators & Competition

Executive Bio

Former VP Clinical Sales at Intuitive Surgical

Interview Transcript

Disclaimer: This interview is for informational purposes only and should not be relied upon as a basis for investment decisions. In Practise is an independent publisher and all opinions expressed by guests are solely their own opinions and do not reflect the opinion of In Practise.

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That sounds helpful.

Indeed, the majority of a capital salesperson's total targeted compensation, if they meet their targets, is nearly $600,000. This includes a number of new robot sales, particularly sales in hospitals that do not yet have a robot. Although this number is declining in the United States, it remains significant overseas. It's the primary source of their income. They also receive a larger share from second system sales, which refer to any sale after the first one. They earn a substantial share from these additional system sales.

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That sounds helpful.

The clinical salesperson's role begins once the robot is installed. If the sale of the robot has been successful or there is an existing robot with enough availability for another surgeon to be recruited, it is the clinical salesperson's responsibility to recruit a surgeon. They guide them through their training, which includes case observations, simulation, lab training, post-lab cases, and the start of their cycle of cases.

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That sounds helpful.

The clinical salesperson is paid based on procedure growth. If their territory had 330 procedures and the growth expectation is 17%, they need to achieve a growth of 330 times 17% this quarter to meet their target. There are also other factors, like new instrument sales. For example, if a surgeon is trained in bariatric surgery and starts using the stapler, the clinical salesperson is paid based on the number of times the stapler is used. There are various procedural elements they are paid for, but the main focus is on quarterly procedure growth.

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