Titan Medical is withdrawing all forecasts with respect to the cost and timing of the development of its robotic surgical system beyond the fourth quarter of 2019 because its lack of financing has caused its primary product development supplier to limit the development work on its robotic surgical system. This supplier has also terminated the employment or engagement of a significant number of the employees and contractors who had been working with the supplier on the development of the robotic surgical system.
Additionally, according to a press release, Titan Medical’s relationship with another service provider has deteriorated. The press reports claims that the service provider has noted concerns about the Titan Medical’s “inability to fully pay invoices” but adds that Titan Medical itself has expressed dissatisfaction with the quality of the work performed by the service provider. Furthermore, on 4 October 2019, Titan Medical received a demand letter from attorneys engaged by the service provider demanding payment for all amounts the service provider believes it is owed—$2,902,916. On 11 October 2019, the company issued a response letter declining the terms of the demands set out in demand letter. Pursuant to the company response letter, Titan has requested that the service provider cease all work on behalf of the Company.
The press release says that these events will significantly impact the timing and costs associated with the completion of the Titan Medical’s future milestones as additional time and cost will be incurred to rehire employees and resume product development.
Titan Medical is focused on computer-assisted robotic surgical technologies for application in minimally invasive surgery (MIS). The company is developing a single-port robotic surgical system comprised of a surgeon-controlled patient cart that includes a dual-view camera system with 3D and 2D high-definition vision options and multi-articulating instruments for performing MIS procedures, and a surgeon workstation that provides an advanced ergonomic interface to the patient cart and a 3D endoscopic view inside the patient’s body. Titan intends to initially pursue gynaecologic surgical indications for use of its single-port robotic surgical system.