ARTAS Restoration Robotics Class Action Lawsuit
Well this came out of nowhere. Restoration Robotics, the manufacturer of the ARTAS robotic hair restoration system, is now the subject of a class action lawsuit that claims misleading information was given to potential investors. In fact, the claim is that "untrue statements" were given prior to the initial public offering and this inflated the stock price, which was at roughly seven dollars a share. Since the IPO, Restoration Robotics has fallen to a 52 week low of 2.61 but is currently in the mid three dollar range with some wild relative fluctuations.
What does this mean for the future of ARTAS? In my opinion, ARTAS has been losing ground in North America and I don't know of much market penetration into the European FUE hair transplant market either. From what I understand the only market that the ARTAS is seeing any promise is in Asia. The ARTAS system has, in my opinion, fallen flat with it's delivery only because of how long it takes to introduce improvements. There is no doubt that the ARTAS system is an impressive piece of engineering and I have always said that the tool is only as good as the hand that wields it. I have seen some very good results using ARTAS and I have seen some extremely poor judgement by some clinics that use it as well.
I personally believe that the future of FUE will remain in hand held manual punches and advanced hand held motor extraction devices such as the WAW system, Smartgraft, and other options on the market, or soon to be on the market. This means that ARTAS will continue to be pushed out of existing markets and will have little chance of penetrating new markets due to the exuberant up front cost and the ongoing costs of materials and continual usage fees as well.
To learn more about the class action lawsuit against Restoration Robotics, visit the website below.