Some people say why not just sell and take tax loss and buy back in IF NOT BUYOUT. Couple of reasons, all the newbies who have invested in Titan are UP!! They don't have losses so newbies over last 2 years would be selling and taking a massive Tax hit. Second, all longs aren't going to do it b/c they have already done it in the past and reestablished positions at cost averages below $1.50 and believe in the ENOS technology. And the longs with cost averages over $10, $20, $30 who have never averaged down probably should consider doing it b/c it's loss money anyway (its probably also .01% of the float).
Milestone 4 is due at the end of Sept. So when Milestone 4 is hit and Titan announces it and receives payment what are the next options.
Option 1. Titan receives money, pays off loan and has a Single Port Surgical robotic platform ready for Regulatory Submittal. They decide to go it alone.
Option 2. Medtronic buys out Titan immediately for one lump sum of money $4-6 Billion.
Option 3. Titan and Medtronic enter into another agreement (similar to Mazor deal) where Medtronic takes an equity stake and helps Titan thru human clinical trials, regulatory process and commercialization process.
Option 4. Another player comes in and makes an extremely attractive offer to buy ENOS, Entire Intellectual property portfolio and the world class R&D team.
Option 5. Titan decides to license IP and know how (consistent revenue stream)to other companies eager to get into Surgical robotic space, continues to crank out patents and still has a Single Port Surgical Robotic platform.
When prototype is delivered, I lean towards Option 3, it makes the most sense from both parties and the most logical. It will allow Medtronic to make the ultimate commitment to surgical robotics and Titan and deliver surgical robotic platforms that will be an alternative to ISRG and quite frankly a better platform. Also, acquiring the Single Port platform prevents another company from coming in and acquiring it(some argue the Medtronic can just develop a single port in house but Titan would be a prime competitor with no patent infringement - quite attractive to a JNJ, ISRG, CMR, Stryker, Olympus, etc).
Option 3 would allow Medtronic to collect all the clinical data and studies from ENOS to help in their upstream and downstream marketing. It would also allow them to get in early to help set up manufacturing, supply chain and logistics so when roll out happens its seamless (unlike the Mazor acquistion).
Option 3 would help them tremendously with the HUGO rollout b/c as they speak to CEOs and CIOs of health system, its quite an attractive package to talk about multi-port, single port and endoluminal ALONG with all of Medtronic's other business with their system/facilities.
Option 3 would allow them to move with speed thru the clinical and regulatory process b/c they would be sponsoring Titan and allow Titan to run point with assistance from Medtronic (especially b/c Medtronic will be coming off the heels of their own clinical trials across facilities where the road has been paved). Hospitals and clinicians would be familiar with the shared IP in the systems (i.e hand pieces, ergonomic physician station, etc)
I am hoping for Option 3 b/c I believe as a shareholder that is the best option for my return on investment. Options 1, 2, 4 and 5 all will lead to appreciation but maybe not at the rate of return Option 3 would.
It will be fascinating to say the least and I know every single person who comes on this board is wondering what Option will it be.
AI
