Pro-Dex inc - medical device supplier to worlds newest TKA robotic system

The pitch is their stock is cheap with the product launch that's occuring through Zimmer Biomet. Zimmer bought a company called Monogram Technologies through the honey badger merger subsidiary last year (honey badger don't give a damn!) in order to own a new autonomous surgical robot capable of customized implants with a sub 5 minute TKR from registration to final cuts. The device is hands free and remotely operable. What Monogram built is a marvel of modern engineering & a reminder that small focused private companies can still garner technical edge over the largest specialized enterprises in the world, in my opinion.

Because this agreement formed with Zimmer and Rick Van Kirk's (PDEX ceo) former relationship with monogram as a board member, his small little company is not the exclusive surgical device supplier for anything that has mBos software on it. This device performed the worlds first fully autonomous total knee replacements in India in the last 6 months. Ivan Tornos has been making rounds & has stated they intend to launch the device early 2027. If you were at AAOS26, you would have seen the device being displayed and demoed. It was the premier tool from Zimmer at the event & is being integrated into the ROSA line of surgical robotics.

Despite the margins not being displayed in the exclusivity agreement I estimate Pro-Dex's margins to increase by around 50% in the next 3 years. Some of that may end up being frontloaded because they purportedly gave rights for disposables away in exchange for a royalty so they'll be recieving a per surgery royalty fee thats 100% pretax margin revenue. This is a small company that was built off of work in CMF orthipedics for surgical drivers and autoclavables, and as such entering the surgical robotics for knee replacements is a big transition.

The company has significant customer concentration & does not explicitly state who this is, but it is privately known to be Stryker.

Biggest red flags are the board and CEO sometimes manage balance sheet cash by purchasing equities. Usually this is a no-go for me but there's been historical alignment between minority shareholder interests & management. It also enabled the formation of the original deal with monogram that has kicked off PDEX most recent bull market.

I think shares could eventually trade for 200-300 USD.