Titan Medical reports second quarter 2021 financial results

Titan Medical Inc, a medical device company focused on the development and commercialization of its innovative surgical technologies for robotic single access surgery, today announced financial results for the three and six months ended June 30, 2021.

During the second quarter of 2021, the company made solid progress under the development and license agreement with Medtronic plc, strengthened its leadership team, expanded and diversified its Board of Directors, increased its cash position, secured additional intellectual property, and progressed activities toward filing an IDE (Investigational Device Exemption) application with the FDA, currently anticipated in the first quarter of 2022.

“Among our accomplishments during a highly productive second quarter is the progress achieved by our rapidly growing engineering team in Chapel Hill, recently evidenced by the successful completion of a porcine hysterectomy and simulated hernia repair using our Enos™ robotic single access surgical system. With this foundational work competed, along with cash on hand to fund us through 2022, and the recent additions to our Board of Directors and leadership team, we are well positioned to execute on our plans toward regulatory clearance and commercialization of our Enos system,” stated David McNally, President and Chief Executive Officer of Titan. “Additionally, the company enhanced its development and manufacturing capabilities and expanded its intellectual capital, adding to a growing patent portfolio, which now comprises over 175 patents and patent applications. We believe that our intellectual property portfolio, a subset of which we share with Medtronic under a development and license agreement, positions us as an innovation leader in robotic single access surgery.”

“Looking forward, we are focused on clarifying expectations with the FDA for human clinical studies, currently planned to commence in the first half of 2022, and on the completion of the final milestone associated with the Medtronic development and license agreement, anticipated by year-end,” McNally explained. “Our vision of commercializing a leading edge innovative robotic single access surgical system in an underserved market is closer to being achieved through recent progress and planned actions,” McNally added.

Financial Highlights
As of June 30, 2021, Titan had cash and cash equivalents of $55.0 million, compared to $25.5 million at December 31, 2020 and $53.4 million at March 31, 2021.

Research and development (“R&D”) expenses increased to $7.1 million in the quarter compared to $0.1 million in the second quarter of 2020. R&D is focused on the development of the Enos system and development activities under the development and license agreement with Medtronic. In the comparative period, the Company temporarily suspended R&D activities. For the six-months ended June 30, 2021, R&D expenses were $14.7 million compared to $0.2 million in the comparative period.

General and administrative (“G&A”) expenses were $4.8 million in the quarter compared to $2.4 million in the comparative period. The Company adjusts G&A for non-cash and one-time items such as stock-based compensation (“SBC”) and severance. Adjusted G&A was $3.2 million for the quarter compared to $2.2 million in the three-month period ending June 30, 2020. The increase is primarily related to the expansion of the leadership team to support the development of the Enos system and advancement of the Company’s strategic initiatives. For the six-months ended June 30, 2021, Adjusted G&A expenses were $6.5 million compared to $3.6 million in the comparative period. Business Wire