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Any new info or documents besides the marketing presentation update and the notable updates in the prospectus that came out earlier this week?
Awesome, definitely a good decision going into business for yourself. I come from a CRA background but I am in a different role though still heavily involved with Clinical. I echo your sentiments of some of the larger CROs if not most, they bring in the money though.
Nice - I come from a Clinical Research background at a Sponsor. I'm sure we and others have contacts that may very well be working on the Titan trial with the new CRO. I know I do.
Also picked up some calls this morning. Some gains already we'll see what happens. Could be a fun plays through the rest of this nonsense.
You in the CRO world?
What is the likelyhood that enough warrants to achieve this are owned by institutional investors that are also invested through other means in the company? I am not that familiar with previous warrant scenarios in other companies, but these institutional warrants alone could raise further money thus avoiding dilution regardless if in or out of the money. Guess it would depend on the "opportunity cost" of exercising potential out of the money warrants vs. getting hit with dilution; this break even may be so minor. Perhaps off the cuff talks between management and investors around this scenario. Just thinking creatively as the company has not raised that much to provide a runway. They must have something planned to achieve additional money through PPS increase/warrant exercising instead of another round of financing.
Being in the US and warrants owned by SCHWAB there is no point in me exercising as the shares will have a US restriction. Hopefully this can be figured out by the brokerage.
Thanks for the visualization on this HC.
I'm torn on either occurring first. Financing would have cratered the stock to 0.70s level then back to $1 hopefully. At least this way we have stayed around our original range with a loss of ~10% in PPS.
End of the day the shelf financing was expected given initial request and cash on hand + cash need for milestones, distributor agreement is a huge positive, and it confirms that they are pushing forward. I am long so this is a small blip in the radar and I'm looking forward to end of year announcements. Hopefully management can increase their communication; it's one of the requirements of being public/OTC at this early stage in the game otherwise it can be detrimental.
This is what I'm thinking. Looks a lot like a bridge loan to get them enough dollars to execute on next milestone and then they're good to go from there.
Their shelf financing allows them to finance the rest of the 35M at any time? I forget the terms. Could always go back for more, but why would they not do that in the first place...
Appears that shelf financing news and reaction was built into the price already. Back to levels we were at distribution announcement. Excited to have everything now on the table and driving towards milestone progress.
Agreed. I just loaded up on several thousand shares. Looking to incrementally add to hedge my cost basis in this zone.
Rough open....
To add to your post Re: Schwab. I had to have them add international trading on my account (quick process). All orders to buy/sell/exercise had to be done over the phone. However they mentioned that all shares received after exercising the warrants will hold the U.S. restriction and they are unable to move this so you cannot sell the shares.
Not sure if you received any updated information from them around the U.S. Restriction.
No one seems to like working for Google Ventures...
Exactly - everyone has hidden agendas and those sentiments come through each post regardless if it's conscious or not. Not saying its true in this particular case, but you can't really trust anyone on a public forum. The sentiment of this board sways so rapidly to and from positive/negative on a weekly basis purely off a few posts from users;
Agreed - lots of noise on this board to which I have recently shied away from. Board needs to come back to concise posts with relevant and informative details. To much speculation and arguing going on now.
Not big money IMO - the cash portion is fairly small to pick up a company this far in commercialization. Great move on TRXC's side and they got a great deal.
Thanks for posting this LTG - this positions TRXC very well in the entire market segment. Q1 2016 will be very exciting and those are some incentivized milestone payments to move along commercialization.
Will be interesting to see what TRXC has to say during their press conference tomorrow AM. I am familiar with those institutional investors heavily invested in TRXC and I believe both TRXC and TITXF will succeed. Based off TRXC history (Device wise, not decision affecting PPS) and those backers I imagine this was a strategic buy but I don't know much about this company or technology.
Agreed - several physicians I know that are top in their spaces and pioneers with Intuitive were invited up to Canada a few years to tour Titan's facility and have time with the device. The consensus was unanimous that they were not excited about the device and that they had a LONG way to go. Obviously this was before Titan moved to an updated device and made MUCH progress and iterations to their device.
I still talk to these physicians today who hold the same sentiment from their experience a few years ago and they have no reason to actively look into Titan's progress until it gets closer to coming to market or comes to market. Having shown them recent slides and MD&A they were very impressed though.
That link worked for me earlier (I am not a subscriber nor did I pay). It must have been because I googled the title and entered from Google.
----------------
We recently wrote on the advances and proliferation of robotics in the industrial world. There are other areas where robotics is having a significant impact.
Recent advances in sensors, machine vision, drive motors, electronics and hydraulics are giving rise to technologically superior robots that can augment skilled human endeavour. These machines are raising productivity, improving outcomes and having significant economic impact.
Healthcare is an area where robotic surgery is increasingly making inroads. This is also the area where there is an investable opportunity: Intuitive Surgical (ISRG US), a publicly listed, US-based pioneer in the design and manufacture of robotic surgery systems.
Intuitive Surgical has had a virtual monopoly in the robotic surgery space since it was founded in 1995. The company went public in 2000.
Intuitive Surgical basically invented robotic surgery for complex procedures. Its main product is called the da Vinci system (named after the legendary Italian inventor). This consists of a surgeon’s console, a side cart for the patient and a vision system. The operating surgeon controls arms which have endoscopic instruments on the end that perform all surgical tasks such as cutting, cauterising and stitching.
The da Vinci system essentially replicates the hand and wrist movements used during surgery.
The system performs what is known as minimally invasive surgery which results in less trauma, blood loss and pain for the patient and significantly shorter hospital stays, while requiring fewer operating room staff.
It can also boost the hospital’s bottom line. Surgeons can perform more procedures in a day because the system reduces fatigue: surgeons don’t need to stand for hours on end, craning their necks to maintain a proper visual perspective.
Advanced 3D visualisation provides an almost perfect and magnified view of the affected area in the patient so mistakes are almost non-existent. However, it is the surgeon who controls the machine, so the level and quality of training is paramount.
That being said, when I visited the company in 2011, I was allowed to sit at the console and “operate” on a capsicum — and miraculously it survived! Given that I am more at home with a chainsaw than a scalpel, the way that the machine translated my clumsy and untrained hand movements was quite incredible.
Historically, the company has enjoyed an incredible run of growth as hospitals in the US and around the world bought da Vinci systems. The installed base now includes 2300 systems in the US, 573 in Europe, some 300 in Asia, and 38 in Australia and New Zealand. The systems are not cheap and can cost nearly $US2m depending on the model.
Systems are not the only revenue generator for the company, as the specialised cutting devices on the ends of the arms must be replaced after each operation and the machines must be serviced regularly — another recurring revenue stream that can exceed system sales.
Procedures that have been commonly and successfully undertaken by doctors using the da Vinci system include prostate surgery, hysterectomy, gall bladder, kidney, and other lower abdominal surgery. In 2014 there were over 570,000 procedures undertaken globally employing da Vinci systems. The company also believes there are many more opportunities in general surgery, cardiac/thoracic procedures and complex head and neck surgery.
In 2014 the company introduced two new products to the market — the da Vinci Xi and the da Vinci SP. The Xi is a fourth generation system with a number of improvements including slimmer robotic arms, laser targeting with voice-activated set up, and self- calibrating endoscopes. The SP is a new one-armed patient side cart dedicated to single port surgery and has already been approved by the FDA for urology procedures.
Intuitive Surgical recently reported second quarter earnings and it was a great result, posting increases in revenue, profit and number of procedures that were significantly above Wall Street estimates.
Intuitive Surgical generated Q2 2015 EPS of $US4.57 which beat consensus estimates by a whopping $0.59.
That represents Y/Y EPS growth of 29 per cent.
Revenues of $US586.1m (+15.7 per cent Y/Y) beat consensus by $US19.24m.
A breakdown by business verticals saw instrument sales up 13 per cent to $US296.3m; systems revenues rose 22.5 per cent to $US176m, and services gained 7 per cent to $US113m.
The company also said worldwide procedures for its da Vinci Surgical Systems rose 14 per cent, driven by growth in the US and Japan — its two main markets.
In terms of actual procedures, hernia repair was strong as were colon resections, and prostatectomy. Hysterectomy procedures were “stable”.
System shipments in total (Si and Xi) increased 22 per cent from 96 to 118. Some 64 per cent of the system placements were second generation Xis.
The new da Vinci Xi systems will go on sale later this year in European markets and in the US in 2016 after final approval by US regulators.
For now, Intuitive has the market to itself but eventually there will be competitors. Large companies like Johnson and Johnson and Covidien (now part of Medtronic) already operate in the laparoscope and medical device market and they have expressed interest in robotic surgery.
There are some smaller emerging companies such as MedRobotics, SOFAR and Transenerix that could eventually ”disrupt” Intuitive Surgical’s almost unassailable market position, although this is probably 5-10 years away and only with smaller single-site machines.
Intuitive Surgical has a market capitalisation of $US18.8bn and trades on 25 times 2016 EPS.
Not anytime soon - I believe they will be acquired post-CE mark and pre-FDA approval. This is still down the road. Until then, they will go it alone hopefully with maximum assistance of slight boost in share price so warrants are exercised and minimal to no use of the shelf financing. I have no doubt they will achieve their goals and that's why I remain strong and continue to add at the low PPS.
Agreed, not exciting. I did like the physician's coke bezel GMT though.
I haven't watched the webcast yet, but will hopefully skip through to see some discussions over the next week.
Training will be paramount on new RASDs that are released to the market. IMO, the entire industry needs a reformat to introduce centers of excellence to maximize technique and patient outcomes using these devices.
I know of surgeons and surgical centers that are "world-renowned" and do some of the highest volume of procedures in the world and their outcomes are inferior to other surgeons and centers that do much lower volumes. You wouldn't know this unless you have seen the data behind the surgeries (which is not published). They are using the same Da Vinci robot as other physicians, so one can only assume that their training or technique is producing poor results in comparison to the rest of the industry. Scary.
Titan will need to take a very calculated approach to selecting doctors for their trials, initial roll out and proctorship/training programs. Not only is the industry not controlled properly IMO, but it will be an entirely new device. I think Titan knows this and is acting accordingly based off previous new of training partnerships and what not.
Also holding 42 calls. Was hopefully in initial AH pop, but not looking great now. Will see in AM.
Look at that!!
I agree 100%. Looking at this recent move it's a definite insurance plan and provides a lot of safety for the long-term of this company. While it hurt the bottom line short-term, the funds they have, the warrants, and now this shelf-offering will provide them enough funds for anything that comes our way.
I'm predicting we'll start to see some additional PRs later this year and the stock climbs steadily. Ideally bringing it within warrant territory (probably not all of them) and executing for cash with little need to execute on the shelf-offering.
I agree 100%. Looking at this recent move it's a definite insurance plan and provides a lot of safety for the long-term of this company. While it hurt the bottom line short-term, the funds they have, the warrants, and now this shelf-offering will provide them enough funds for anything that comes our way.
I'm predicting we'll start to see some additional PRs later this year and the stock climbs steadily. Ideally bringing it within warrant territory (probably not all of them) and executing for cash with little need to execute on the shelf-offering.
Can someone comment on where our supports currently are? Loaded up some this morning and plan to add throughout the week.
I also agree - picked up some calls last week and we'll see what happens.
I am not too familiar with shelf offerings - could this be in place as last ditch effort? Ideally the first option below occurring, but perhaps the second?
Best case scenario: Titan is ahead of schedule, PPS climbs, warrants are executed and full financing is completed without touching the optional $45MM financing and no dilution occurs.
Not positive scenario: Titan slightly ahead of schedule, PPS climbs a little, only some warrants are executed and they're $5-15MM short in capital to achieve commercialization. These issue these shares to fund them through to commercialization.
Worst case scenario: Titan falls behind schedule, PPS is stagnant, no warrants get executed, they must initiate a majority of the shelf offering to get them through to commercialization.
However, if they were in M&A talks right now, I would think the acquirer would have a contingent plan for a bridge loan or similar to get them through to commercialization if needed instead of financing. However, it's definitely early to have these discussions and could be forcing Titan to go it alone even if interested parties could be at the table with them.
Nice find!
UA up on earnings.
Awesome thanks! I see at least one name on there who is an avid Da Vinci user who previously expressed lots of interest in Titan Medical's developments. Can't say who, but this meeting will be a good move for the RAS community as a whole.
The weak hands are definitely folding. I'm in long and holding strong.
Where are you seeing who was invited to sit on the panel?
Nice work!!!
Bought some Apple puts this afternoon @125
Sold 550c @5.10 from 1.10. Excited to learn more.