Titan Medical: Seeking a niche in single-port robotic surgeryTitan Medical (TSX:TMD;OTC:TITFX) faced a working capital deficit of $9.7 million in mid-2019. Fast forward to the end of Q2 2020, and the robotic surgery company had $21.7 million in working capital and was able to resume product development of its single-port robotic surgical system.
Titan executives were able to turn things around thanks to a $10 million license payment as part of its new development deal with Medtronic (NYSE:MDT). Titan also brought in $18 million from a public equity raise in June, followed by an additional $11.5 million last month.
Titan Medical CEO David McNally in July noted the clinical success that surgeons are reporting while using Intuitive Surgical’s da Vinci SP — currently the only commercially available single-port offering — but the success involves surgical indications outside the initial target area that Titan is pursuing.
A difficult fourth quarter brought on losses of $20.6 million, with an increase in non-cash loss on warrants playing a major role, although another $10 million in the license deal with Medtronic did offset some of those losses.
“The progress made in the second half of 2020 resulted in an incredible year of accomplishments to position Titan for success. Recently announced financing arrangements and warrant exercises add to that progress, further strengthening our cash position to support the development of the Enos robotic single access surgical system, as we prepare to commence human clinical studies,” McNally said in a news release. “During 2020, we also executed a license agreement and a separate development and license agreement with Medtronic, resulting in the Company’s first revenue of $20.0 million, by way of license payments.
“We believe Titan is in an excellent position to validate our vision of providing an innovative single access robotic surgical system. We are proud of our progress and recognize that our success is a direct result of the commitment and hard work of our entire team.”