Titan Medical Inc (TMDIF)

[RockoTaco]

So in order to compete with ISRG any competitor will need Multi-port, single-port and endoluminal. So let's take a look at Medtronic - we know that their Multi Port will be Hugo and their (IMO) Single Port will be Titan, where will the endoluminal platform come from? Will it be based off their 4 year secret agreement with Karl Storz?

https://www.fiercebiotech.com/medtech/medtronic-reveals-past-karl-storz-team-up-ahead-robotic-surgery-unveiling

Will it be another endoluminal player that will also be acquired by Medtronic?

Is Milestone 4 the delivery of an endoluminal platform for Medtronic? Is Milestone 4 delivery of snake arm technology with end effectors incorporating wrist roll technology for an endoluminal platform?

This is a long game for Medtronic, they understand the importance of Robotic Surgery for the next 20+ years. So in the short term, will HUGO alone be enough for them to compete with ISRG over the next 5 years, will Hugo alone be enough for them to hold off increased competition, which is happening.

They also have to be thinking about IP and how incredibly important it is in this space to protecting this business. It would be incredibly important to also have an R&D arm that is innovating in this space rapidly and developing patent and IP. Not only would it allow protection of the early revenue but also provide a great avenue for future growth in the next frontier of Robotic Surgery 7-10 years from now.

So when I look at Titan and they have a SINGLE PORT PLATFORM coming up on regulatory submission. They have IP (over 170) that protects their SINGLE PORT PLATFORM but can ALSO ENHANCE OTHER PLATFORMS (i.e. Hugo). The IP also provides the basis for future innovation in Robotic Surgery. Titan is also cranking out patents at a rapid pace thru their R&D.

If I took out Medtronic and Titan and laid out the above scenario with company A and Company B - almost everyone would look at that and say the value of company B to company A is worth Billions. The revenue projections alone in robotic surgery are growing exponentially year after year. ISRG is over a $100B MC on $4B in sales. Medtronic's FY19 revenue was $30.5B, their current MC is $165B - imagine what $4B in robotic surgery revenue would mean to Medtronic MC - what about $10B in revenue? $20B? You could do the same exercise for JNJ or Olympus or any medical device player looking at Robotic Surgery.

We've seen CMR valued at $3B - Vicarious is valued at $1.1B - do they bring as much value to a big medical player like company B does? I don't think so.