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All the robotics companies to date that have been purchased had fda approval and some sales. JNJ buying out their partner is hardly like MDT buying Mazor. I will say that JNJ or ISRG are probably the only two companies that might want to acquire TMDI. Even if one of them acquire TMDI, I don’t think the price will be something that will get me back to break even. TMDI, at this point has a great deal of execution risk, and there was a time, I thought Titan had a revolutionary device, now I am not sure what they have.
JNJ and Google both owned a stake in VERB and JNJ bought out the remaining share. No company owns a stake in Titan, if there were a big med device company interested in TMDI, they would more than likely already have taken an equity stake. While possible that someone could buy Titan, this is not usually how it is done. I worked for a company that was bought, I also worked for a company that did a lot of buying, and Titan does not look like any of those acquisitions. Is it possible that VERB could buy Titan, sure and I hope that they do. I don’t think that it is likely though.
Verb and JNJ were already partners.
Medtronic bought Mazor, so you need to add those time periods together. Zaring made a big chunk when MDT bought Mazor, he is looking to do it again. It is hard to believe that Titan brought a commercialization go over, and Titan knew of all the problems.
To get through FDA
I really don’t know how bad the problems are, I can just tell from my conversation and the fact that commercialization guys were brought on board, that they were blind sided. Aspire, will be used to float this to financing is my understanding of what is going on. Bottom line, we need 70-100mm to get this approved. The litmus test does me, is will Zaring and Fed stick around? They are not finance guys.
I have watched procedures for 25 years and it is a rare event for a patient to request a certain device. The doctor would in those situations explain why you would want to use the device he was planning to use.
I am not claiming they are competent, but you don’t bring on commercialization people if you are lying about timelines.
Everyone needs to take a step back. Zaring and Federico were brought on to commercialize the robot. All indications were the robot was ready for IDE submission. One of the subcontractors, and I think it was the software company has screwed this up. Feds and Zaring would not have been hired if McNally knew the robot was not ready.
You can hope all that you want, but I am telling you, there is too much execution risk in this. The bigs don’t buy fixer uppers, they take risk, but not this much risk. TMDI does not have an operational robot, it is not even ready for IDE, no robotic company to my knowledge has been purchased at this stage. A buyout is not going to happen.
I was not able to get any specific info from him. Randal a few weeks back said that they were going to pursue a US only raise. My guess is since PIPER JAFFRAY, put out a $2.50 price target, they are the ones attempting this. I don’t think that things look very good right now, obviously.
They can put it in as a milestone, but it is a worthless milestone. Titan does not have an operational robot. So who cares if they have a quality system in place, they are not going to produce anything. Titan needs financing and it is a guess if they will get it. If they don’t get financing, this is going down the crapper.
They don’t have an operational robot. ISO is meaningless.
One of the Titan Board Members gave me most of this info and some I had to extrapolate as I was unable to get direct answers.
Zaring is not a CEO, so he is not taking over. Zaring and Federico, were brought over to commercialize the robot, as to date, not robotic company has been purchased with zero sales. After they arrived it came to light that there were some things not right with the robot and my educated guess is, it is the software. TMDI is trying to get financing and it is a guess if they will get it. No big company is going to buy TMDI as there is too much execution risk and if a big boy just buys the patents it wont be for much. ISO cert is meaningless. That is what is going on.
I am sure that Titan still has an option pool. Repricing options is not dilutive, you vote no on reprice, they just empty the option pool and you and I get diluted. That is how the game works, I have sat on a Board before. Reprice was the right thing at the time.
Bet me. Zaring as far as I can tell is not getTing a salary, at least I can’t find it. If Zaring is still around, his options will be repriced or they will just give him a bunch more. Same thing.
Zaring did spend a little time at Intuitive, whether he was lied to or not, it is anyone’s guess. I think it is more likely they discovered issues after Zaring came aboard. Last check Zaring is still at Titan. Maybe him staying or not, is a decent litmus test, who knows. Zaring of course will get his options repriced and we will get diluted to hell.
He may have been lying or the troubles were discovered and there was an oh shit moment. Either way we are not in a good position right now.. I don’t even know if they have this robot figured out yet. You better hope that they get some money and get this close to or through the finish line. No one knows how much if anything these patents are worth and a fire sale will not bring much money. I am hoping that this stays below 300mm shares and they can still sell for 5-10 bucks a share, but going out of business is not entirely out of the question.
I have been involved in acquisitions and the company that I used to work for bought several companies. Titan does not have this figured out yet, a company with less expertise is not going to try. No big company has taken an equity stake. As much as I would like a partner or someone to acquire Titan, I don’t see it happening anytime soon.
What planet are you on? They need 100mm more dollars to get this approved. What about this looks solid? Nothing does and that is why they cant get money. No Big Gun is going to buy this, stop wishing and driving yourself nuts.
Because mgmt thought as they hit milestones that the stock price would have gone up, but their latest screw up and the fact that they missed on the funds calculation needed to execute approval has killed them. If titan currently had everything figured out, the raise would have been at a much higher valuation and Titan would have gotten the money. Now they are in a lot of trouble, not to say they can’t get out of it, but we don’t even know if they can make a robot yet.
Big Med device companies generally don’t buy distressed assets, they are not vulture capitalists. Not one big company has even taken an equity position in Titan. I certainly hope they partner, but I have been involved in several acquisitions and partnerships and Titan is not a likely candidate.
I know what ISO is, but in the big picture, it is a meaningless milestone. They currently do not have a robot ready for IDE.
ISO is a meaningless milestone.
Zaring on a train, I highly doubt it. If he is on the train, he will more than likely be getting off in Philly and not going to Tennessee.
Sure Titan can be bought, the acquiring company assumes all debts, liabilities and contracts. The problem is if there is not a whole lot of interest to buy Titan, and there appears that there is not, then Titan will get crushed under their liabilities and their inability to get funding. For some reason, many on this board believe that Titan has some great technology and maybe they do, but Titan cant really prove that yet and no one is knocking on the door to buy this. Titan has some big trouble right now.
Well Geo, I was in a very similar situation a few years ago and had the same mind set that you do. The technology was validated by several sources, there were also big gun investors involved, and I put 7 digits in the company, and the whole thing crashed. The $100mm to get Titan through FDA, should give everybody pause. Titan is dysfunctional and not executing, and need 100mm. Titan may not be able to get the funding and a fire sale of IP IMO is not going to bring in a ton of money. Be careful.
I know some sales people at ISRG, ISRG is an arrogant compnay, and maybe rightly so, but they are not in fear of Titan.
MDT and JNJ are chasing multiport right now. That is the biggest market. MDT, IMO, is producing another `TRXC, and they are having trouble figuring that robot out. Titan has been working on SP for over ten years and still don’t have it figured out. The big boys would rather pay more for a sure thing. Titan is not there yet IMO.
Titan said to me, that debt instruments are not a good idea right now and I asked about them partnering. The answer was, they know who we are and we know who they are. I have posted this several times, that big med dev companies, usually take a stake in a company that they like. I will say that with all the issues with Titan, the only company with the expertise IMO, to fix this mess is ISRG. From past experience Titan is still viewed as a big risk to the JNJ’s of the world. When and if they Titan gets it figured out, I believe acquisition is possible. I believe they will use aspire and attempt another raise, Titan was saying a US raise.
It wont be debt.
Big Balls!!
According to my conversation, I don’t think they will take on debt,
Titan is at all time lows, that is the only market that means anything to Titan. MGMT has a lot to do with the all time lows.
BP is Big Pharma, Titan is not Big Pharma.
Titan needs to derisk this, so yes, that is possible. As I have posted several times, in the past 10 or so years, big Med device looks at many start ups and takes positions in the ones that they think will pay off. No big company to date has taken a stake in Titan. That has always bothered me.
If MGMT took this in bankruptcy, they would have a tough time getting away with that.
I am at 2.80, waiting to see what they do from here. Currently not buying, not selling. You just need to forget about the current price and keep an eye on what is going on. I know one of the surgeons who did the 25mm round, he was impressed, with that said, titan has failed to deliver timelines. If titan does execute and that is a big if right now, I think we get our money back, but the but if there is a big home Run, we were early.
I don’t know, depends on your cost basis. This has the possibility of not making it. It would not be the first time that good technology was mismanaged and went down the crapper. A year ago I might have said 4-6 billion, now, I don’t know what it will take to get to the finish line.