Investment Research report

PROCEPT BioRobotics Corp.

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PROCEPT BioRobotics Corp.
Pulling Back the Curtain on Procept
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Research Overview

INDEX:
S&P 500
Sector:
Healthcare
Position:
Short
Date:
Jan 16, 2025

After conducting a forensic financial review of PROCEPT BioRobotics Corp. (Nasdaq: PRCT) (“Procept”), a medical technology company offering a surgical procedure for benign prostatic hyperplasia (“BPH”), Spruce Point raises concerns about the Company’s dramatic overstatement of its addressable market, and we question the credibility of Procept’s key business metrics. Based on our investigation, we estimate a 30% - 60% potential long-term downside and market underperformance risk.

The report highlights several key concerns with the Company, including:

  • We believe that Procept’s claim that they will fundamentally change current BPH treatment protocols across the country is unrealistic, since there is no one-size-fits-all BPH treatment
  • We believe that Procept’s estimate of its addressable market, which is disclosed by the Company to be ~290,000 respective procedures each year in the US, is overly exaggerated  
  • We raise concerns about Procept’s track record of procedure safety and product quality, and we believe the Company over-hypes both the “robotic” and “AI” capabilities of its solution
  • We believe Procept to be an unprofitable, niche, and highly disruptable company whose growth momentum is stalling
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