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Another advantage of forming distributors to sell product initially is they are incentivized to do so. When hiring an internally sales/marketing team, there is incentive for them to sell but they are also paid a nice base salary to offset the ramp up time (whereas distributors are not). There is some of that "collecting a check" mentality while ramping up manufacturing (if done inhouse) or worse a shift in direction from one product platform to another.
By hiring distributors, as soon as the product is ready, Titan can unleash it to all of Asia/Pacifica immediately and any other countries where they have distributor agreements. If we tried to hire an internal Sales/Marketing personnel, we would only be limited to sell where we have someone hired - which would greatly slow the adoption of SPORT.
An example, say Titan wanted to hire sales people - they will need money (i.e. $50M - which will be raised by issuing stock) - PPS goes down - even when we finally get the cash - it will now take 12-16 months to get a sales team in place - have to start at the top with a VP sales - that will take 3-6 months - especially if they are going for a good one - they can't move forward until they get the VP in place b/c that person will want to hire a director and regional/area personnel who will then want to hire local sales people. If Titan were to begin hiring sales/marketing personnel TODAY - they won't have a complete sales team in place for 18 months and that is just a US Sales team.
If Titan were taking this strategy for a sales team, being a startup robotics company, I would probably run for the hills and would certainly reduce my position significantly.
This distributor agreement that Titan is getting in place is giving us a glimpse of how they will proceed with commercialization of SPORT. It is a very, very smart plan to use distributors initially to commericalize. As a startup, I would really be worried if TITXF would try and build a sales/marketing infrastructure, they would most likely have to issue more shares (maybe around $50M or so) and dilute the stock in order to ramp up a team for commercialization. It would be a very poor business decision. That type of strategy has enormous pitfalls for a startup company.
I also think that this continues to point to a potential partnership. I can see them forming a partnership with Ethicon to utilize their sales/marketing/distribution in the US (remember Titan is a Canadian company).
Another point regarding your question, i believe that Ximedica has around 50 Engineers working on SPORT, there is a good bet that with that type of expertise being focused on delivering the next generation, Innovative surgical platform that they are thinking beyond just single port. It would be a lot harder, if not impossible, to be so flexible and adaptable to the changes in this technology if, as a startup, Titan had a couple of engineers working on it. I think it would have been difficult to have worked on Amadeaus for years and have to switch gears to try and introduce a new platform into the mix if we had done it inhouse. Plus Ximedica is incentivized to get this done, sometimes inhouse personnel are just happy collecting the check and chances of falling behind or missing something in the R&D process would be much higher. Ximedica's expertise and knowledge of working with the FDA is huge for us, imagine if we were doing that inhouse with high turnover and inconsistency from employee to employee. If we were constantly looking for top talented systems engineers or quality engineers or manufacturing engineers, we would never generate any consistency in our process or quality. I think it is very possible, plus in the AGM presentation, they clearly state that SPORT is not just a Single Port.
I think it is possible, ximedica is the real deal (consider them being acquired and then the partnership w bridge design). I'd be very concerned if we were R&d and manufacturing inhouse. Startup companies trying to do that inhouse have major problems, in some cases they have a product and due to lack of inhouse expertise to build their signature product, they have to scramble and add product by acquiring and that never works. So yes, ximedica absolutely could pull off multi port.
Someone was telling me that the technicals on TITXF are showing strong buy.
Another interesting tidbit of info lost in the shuffle.
Healthcare service
Ningbo-Longtai is preparing to establish two high-end healthcare centers. They are all in leading
positions in hardware, service quality and techniques.
What it means is that they are establishing 2 high-end hospitals - not gamechanging info but interesting b/c robotic surgery will be a key component of these high-end hospitals.
I am not sure what we open at but I think we finish at $1.25 tomorrow. I also think there will be another piece of news coming out next week that could push it to $1.60 week end
I'm not a warrant holder and If I'm not a warrant holder, why would I care about warrant holders who tried to get on the cheap. Let me see, get money from warrant holders that would only continue to complain or get money from a distributor like this that can bring value to my shares, now and in the future.
Sounds to me that warrants are a gamble and some guys will lose. One thing I don't understand, couldn't a warrant holder excercise their warrants right now if they believe Titan is legit regardless of PPS?
That is so funny that it took less than 2 hours to find that they use distributors.
This deal shouts PARTNERSHIP w a bigger company. For those investors that come to this board looking for info, these naysayers will cost u money if u heed there advice. Think about this, all they say is we need news, we need PR and then we get something like this news and they say, well not good if they release it on Friday, or this means there is no M/A or partnership or this stock will now go down to $.70 - $.90 on Monday. If u think naysayers like that have advice that you are willing to put ur own money behind, go ahead but I'd be wary of people who also see the negative even if there is positive news
How could it be 100% positive if longtai distributes ethicon products in AP?
That's not accurate, they aren't buying 4M shares of common stock, they are paying $4M for common stock under a private placement. Big, Big Difference.
Also, it says potential for another $15,000,000 INVESTMENT by longtai - which means that investment can be in another form than common stock purchase under private placement.
http://www.titanmedicalinc.com/titan-medical-inc-announces-letter-agreement-with-longtai-medical-inc/
so even better, the robot is so good that they want to ensure they get the exclusive rights to distribute, good point Lurker
Think about this, they are paying us $4mil just for the right to negotiate the rights for SPORT distribution. No one has seen this product and they are paying $4mil for first crack at distribution! that is a great sign for all long holders of TITXF.
This is a distribution agreement not so much a manufacturing agreement. SPORT is ahead of schedule, I go back to my previous prediction - SPORT beats surgibot to the global market.
FYI, TRXC has no international distributed agreements for their products. Looks like TITXF has leaped over TRXC.
Can't wait to see how Titan opens on Monday,
I think a move like this would give more credibility to a potential PARTNERSHIP
They are one of the top medical distributors in China - starting to ramp it up!
interesting historical info:
Date of First offering last year 2/9/14
Titan PPS for day ranges $1.14 - $1.28
Titan PPS the month before offering $.89
Titan PPS month after offering $1.69 - $2.25
Date of Second Offering last year 5/23/2014
Titan PPS for day ranges $1.57 - $1.69
Titan PPS the month before the offering $1.76 - $2.01
Titan PPS the month after offering $2.27 - $2.57
After the last two offerings the stock went up.
its true that pps sometimes goes up and down much like TITXF and here is an example of that same relevant concept of another company in the space that TITXF is in:
http://ir.transenterix.com/stocklookup.cfm
Timesyours, whoever bought up the second offering scooped up 12,203,189 shares which is roughly 11.6% of all shares. If the same entity scoops up the shelf offering (depending on how much is offered), they could come close to the 20% threshold specified in the shareholders right plan.
Did you also know that TRXC once traded at a high of $14/share and is now at $2.35/share which according to the technical charts forms a big pile of pooh.
Timesyours, whoever bought up the second offering scooped up 12,203,189 shares which is roughly 11.6% of all shares. If the same entity scoops up the shelf offering (depending on how much is offered), they could come close to the 20% threshold specified in the shareholders right plan.
Did you also know that TRXC once traded at a high of $14/share and is now at $2.35/share which according to the technical charts forms a big pile of pooh.
it completely confirms to me that JnJ is not developing their own robot and is in the market to buy a surgical robotic platform
Welcome to the party pal.
Read that article I sent out the other night. Jnj guy works out of Cambridge.
interesting article
http://www.fiercemedicaldevices.com/story/jj-device-heads-say-new-med-tech-innovation-model-calls-more-external-partn/2015-10-26
wasn't the second offering from Titan last year (the one bought very quickly) scooped up from Cambridge, Mass
For me Anyone who starts pumping marijuana stocks, it's a big red flag.
That is true, so it the fact that their is no record that he DIDN'T get money. you will have to track what he is doing now, i.e did he start up another company? did you start up an investment company? etc.....
JMO but I think Craig Leon got a big chunk of money and was bought out and Hargrove was handpicked to replace him. disclaimer, I was not invested in Titan when Leon was CEO so it shows you that I have been invested less then 2 years.
Adrien Petrie did a presentation at Harvard about 1 1/2 ago and he was discussing medical device development. He was discussing how every major medical device company has a venture capital arm that is investing in early, innovative medtech companies. without specifics, he mentioned a CEO that had gotten a company to a certain point and decided to take his skill set elsewhere (getting money for his efforts to that point) - the "Entrepreneurial Desire/Drive" that someone has. Again, JMHO based on my own DD.
Hopefully u didn't lighten ur load in TITXF and dump it into TRXC which was at $14/share and is now at $2.35.
Boy, I would hate to invest in a company like TRXC that was $14/share and is now trading at $2.35/share. I was looking at their technicals and it does not look good.
I noticed that TRXC was supposed to have 510k Approval by end of 2015, looks like they were misleading us. I would rather they just be quiet instead of trying to pump the stock to try and get it back to $14/share. They told me how great Surgibot was and then they go and pull the rug out from under me and acquire a company ALF that had CE approval several years ago and haven't done squat with it, I thought shareholders would have a right to vote on a move like that. I can't believe TRXC executives would make such a bonehead investment like ALF. I thought Surgibot was the real deal but the executives, by purchasing ALF, have decided to go in another direction and try to implement a Surgical Robotic System since Surgibot is more like Atari.
Question for the board, especially those who are familiar with TITXF Surgeon Advisory Board, why would these reputable surgeons sign on to the advisory board if there isn't anything there, why put their name to it?
To the physicians on the board, what is your take on that, would you just allow your name to be associated with somehting that isn't going to pan out?
Also, Lefty, if you are out there, are you still a fan of Bobby Mcferrin's song "Don't worry, Be Happy"?
This is a great point, can anyone explain why a company like Google/Jnj would commercialize a product without IP protection? I can't believe that they would but I am open to listening to reasons.
Fowler has been working with Joseph Amaral.
Anything is possible, it doesn't hurt that Coleman Lannum is working with Bertner.
unless it is funded by JJDC - it wouldn't spell it out clearly b/c it would most likely fall under the line item "OTHER (INCOME) EXPENSE, NET"
http://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId=21299
Maybe it's an investor who sees Titan as a long term gem and wants to get in maybe dip their toe in the water
When you see that the Johnson and Johnson development Corporation/innovation owns 24.6% of this collaboration, it tells me that they are responsible for bringing the surgical robotics platform. And why I think that is if you studied the JJ DC and what their responsibilities are it's pretty clear and evident. The only question remaining for me is is the platform going to be Titan or another platform?
No he doesn't, when he says there is zero evidence that jnj is looking to acquire a robotic system and then says he is quoting Gary pruden when in fact it was an analyst opinion and not a quote from pruden, that's not good info, it's incorrect.
If u can answer that question w a reasonable response I'd be interested to hear it but I don't think you know what jjdc is or what it does?
Technical update: TRXC is down from $14/share