- The stock price of Titan Medical Inc. (NASDAQ: TMDI) increased by over 9% pre-market. This is why it happened.
The stock price of Titan Medical Inc. (NASDAQ: TMDI) – a medical device company focused on the design and development of surgical technologies for robotic single access surgery – increased by over 9% pre-market. Investors are responding positively to the company announcing it has completed the second technical milestone under the development and license agreement with Medtronic plc (NYSE: MDT). And the company received a $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 Medical and Medtronic in their respective businesses. And Titan retains world-wide rights to commercialize the developed technologies for use with its own Enos robotic single access surgical system.
On October 26, 2020, Titan had announced the 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 $18 million of capital. And under the development and license agreement, Titan would receive an additional payment of approximately $11 million upon completing the third technical milestone, representing the fourth and final milestone.
For clarity, the agreements are between Medtronic and Titan Medical. And Titan Medical is not affiliated with Titan Spine, which Medtronic acquired in 2019.
“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. 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.”
— David McNally, president and chief executive officer of Titan
Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.