TORONTO–(BUSINESS WIRE)–Titan Medical Inc. (Nasdaq: TMDI; TSX: TMD), a medical technology company focused on the design and development of innovative surgical technologies for single-access robotic surgery, today announced that it has received payment from Medtronic plc after successfully securing the final stage of the development and licensing agreement announced on January 4, 2022. In addition, Medtronic’s senior secured loan was withdrawn.
Titan received a net payment from Medtronic of $8.3 million. The payment includes a milestone payment of $10.0 million related to reaching the final milestone and a payment of $0.6 million related to certain legal, transaction and intellectual property fees. A portion of the gross amount of $10.6 million was used to repay the $2.3 million senior secured loan from Medtronic to obtain the net payment. The repayment of the senior secured loan included the initial note of $1.5 million plus $0.6 million in legal, transaction and intellectual property fees and $0.2 million in interest.
On June 4, 2020, Titan announced that it had entered into a license agreement and a development and licensing agreement with Medtronic to advance certain robotic-assisted surgical technologies for use by both Titan and Medtronic. As a result of this development activity, Titan has filed several new patent applications for which it retains worldwide rights to independently commercialize the technologies for use with its own Enos™ Single Access Robotic Surgical System. Additionally, the company was able to attract and further develop its team in Chapel Hill, North Carolina to further expand its knowledge base in robotic-assisted surgery. The collaboration with Medtronic was possible without impacting the development schedule of the Enos system. The previously announced delay in the Enos system schedule is due, in part, to an uncertain and evolving regulatory path; certain resource shortfalls, particularly in the shift to manufacturing and regulatory capacity; and manufacturing uncertainty and challenges (which can be offset by engaging an OEM as announced on January 11, 2022). Additional details of the agreements with Medtronic can be found at www.sedar.com and to www.sec.gov.
About Titan Medical
Titan Medical Inc. (Nasdaq: TMDI; TSX: TMD), a medical technology company headquartered in Toronto, Ontario with R&D facilities in Chapel Hill, North Carolina, focuses on the improving robot-assisted surgery using innovative technologies. The Enos™ Single-Access Robotic Surgical System is being developed with an ergonomic focus to provide a surgical experience that mimics the real-life movements surgeons demand and includes multi-articulated instruments designed to allow surgeons a greater range of motion in a confined space, with the dexterity and ability to exert the forces necessary to perform routine surgical tasks. With the Enos system, Titan initially intends to pursue gynecological surgical indications. Certain of Titan’s robotic-assisted surgery technologies and associated intellectual property have been licensed to Medtronic plc, while retaining worldwide rights to commercialize the technologies for use with the Enos system.
Enos™ is a trademark of Titan Medical Inc.
For more information, visit www.titanmedicalinc.com.
Titan Medical Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of applicable Canadian and United States securities laws, which reflect management’s current expectations regarding future growth, results of operations, performance and prospects and opportunities. business of the company. Forward-looking statements are often, but not always, identified by words such as “may”, “could”, “could”, “will”, “anticipate”, “believe”, “plan”, “expect”. , “intend”, “estimate”, “potential for” and similar expressions, although these words may not be present in all forward-looking statements. Forward-looking statements that appear in this release may include, but are not limited to, references to: the company’s focus on the design and development of surgical technologies for single-access robotic surgery; the company’s belief that manufacturing uncertainty and challenges can be offset by engaging an OEM manufacturer; the company’s intention to initially pursue gynecological surgical indications with the Enos system; and licensing certain of Titan’s robotic-assisted surgical technologies and related intellectual property to Medtronic plc, while retaining worldwide rights to commercialize the technologies for use with the Enos system. These statements reflect management’s current beliefs regarding future events and are based on information currently available to management. Forward-looking statements involve significant risks, uncertainties and assumptions. Many factors could cause the company’s actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including, without limitation, those listed in the “Risk Factors” section of the Company’s Annual Information Form and Form 40-F for the fiscal year ended December 31, 2020, as well as the assumptions discussed in the section titled “Development Plan” of the management of the company for the financial year ended September 30, 2021 (available on www.sedar.com and to www.sec.gov). Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results, performance or achievements may differ materially from those expressed or implied by the forward-looking statements contained in this press release. These factors should be carefully considered and potential investors should not place undue reliance on forward-looking statements. Although the forward-looking statements contained in the press release are based on what management currently believes to be reasonable assumptions, the Company cannot assure potential investors that actual results, performance or achievements will be consistent with such forward-looking statements. Except as required by law, the company expressly disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.