Titan Medical Receives License Fee of $10 Million Upon Achievement of Milestone Under Medtronic Development Agreement
May 28 2021 - 7:30AM
Titan Medical Inc. (Nasdaq: TMDI; TSX: TMD), a medical device
company focused on the design and development of surgical
technologies for robotic single access surgery, announced today
that it has completed the second technical milestone under the
development and license agreement with Medtronic plc (NYSE: MDT),
and received a U.S. $10 million payment for licensing the developed
technologies to Medtronic.
The development and license agreement provides for the
development of robotic-assisted surgical technologies for use by
both Titan and Medtronic in their respective businesses. Titan
retains world-wide rights to commercialize the developed
technologies for use with its own Enos™ robotic single access
surgical system.
“Titan has continued to work diligently to complete this
milestone on time, and we share Medtronic’s drive to take on
healthcare’s greatest challenges to improve lives. I am proud of
our in-house R&D team and development partners that have
contributed greatly to achieving this milestone,” said David
McNally, president and chief executive officer of Titan. “This is a
testament to the expertise and inspiration of the teams, and how
great companies can work together to improve medical technology for
the benefit of patients and surgeons.”
On October 26, 2020, Titan announced achievement of the first
technical milestone and the completion of a non-technical financial
milestone pursuant to the development agreement, with the
satisfactory raising of U.S. $18 million of capital. Under the
development and license agreement, Titan would receive an
additional payment of approximately U.S. $11 million upon
completing the third technical milestone, representing the fourth
and final milestone.
For clarity, these agreements are between Medtronic and Titan
Medical Inc., and Titan Medical is not affiliated with Titan Spine,
which Medtronic acquired in 2019.
About Titan Medical Inc.
Titan Medical Inc. (Nasdaq: TMDI; TSX: TMD), a medical device
company headquartered in Toronto, Ontario and with R&D
facilities in Chapel Hill, North Carolina, is focused on enhancing
robotic assisted surgery using innovative technology through a
single access point. The Enos™ robotic single access surgical
system is being developed with an ergonomic focus to provide a
surgical experience that imitates real-life movements that surgeons
demand, and includes multi-articulating instruments designed to
allow surgeons an increased range of motion in a confined space,
with dexterity and the ability to exert the forces necessary to
complete common surgical tasks. With the Enos system, Titan intends
to initially pursue gynecologic surgical indications. Certain of
Titan’s robotic assisted surgical technologies and related
intellectual property have been licensed to Medtronic plc, while
retaining world-wide 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.
Forward-Looking Statements
This news release contains “forward-looking statements” within
the meaning of applicable Canadian and U.S. securities laws. Such
statements reflect the current expectations of management of the
company’s future growth, results of operations, performance and
business prospects and opportunities. Forward-looking statements
are frequently, but not always, identified by words such as “may”,
“would”, “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, without limitation, references to: the
company’s focus on the design and development of surgical
technologies for robotic single access surgery; the development and
license agreement providing for the development of robotic assisted
surgical technologies for use by both Titan and Medtronic; under
the development and license agreement, Titan expects to receive an
additional payment of approximately $11 million upon completing
Medtronic Milestone 4, the fourth and final milestone under the
development and license agreement; upon completion and acceptance
of the technology milestone by Medtronic and Titan’s receipt of the
license payment, Medtronic will secure a world-wide license to such
technologies; the company’s intention to initially pursue
gynecologic surgical indications with the Enos system; and the
license of certain of Titan’s robotic assisted surgical
technologies and related intellectual property to Medtronic plc,
while retaining world-wide rights to commercialize the technologies
for use with the Enos system. These statements reflect management’s
current beliefs with respect to 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 (which may be viewed at www.sedar.com and
at 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 vary materially from those expressed or implied by
the forward-looking statements contained in this news release.
These factors should be considered carefully, and prospective
investors should not place undue reliance on the forward-looking
statements. Although the forward-looking statements contained in
the news release are based upon what management currently believes
to be reasonable assumptions, the company cannot assure prospective
investors that actual results, performance or achievements will be
consistent with these forward-looking statements. Except as
required by law, the company expressly disclaims any intention or
obligation to update or revise any forward-looking statements
whether as a result of new information, future events or
otherwise.
Titan Medical Contact:Kristen GalfettiVice
President Investor Relations & Corporate
Communications+1-781-869-2553investors@titanmedicalinc.com
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