Research Triangle Park-based TransEnertix (NYSEMKT:TRXC) stock is up nearly 9 percent to $2.31 a share in pre-market trading Tuesday following news that it has agreed to sell its SurgiBot system to a Chinese firm for $29 million. The FDA rejected TransEnterix’s Surgibot submission last year.
The medical device company agreed to transfer ownership of the SurgiBot line to China’s Great Belief International Limited (GBIL). TranEnterix will receive $7.5 million by the end of December and another $7.5 million by March, 2018. The second payment includes a $3 million equity investment in Transeneterix common stock at $2.33 a share.
The remaining $14 million represents minimum royalties to be paid on Chinese regulatory approval or in five years, whichever is first.
TransEnterix retains an option to distribute or co-distribute SurgiBot outside of China.
“The relationship with GBIL will allow us to advance the SurgiBot System toward global commercialization while significantly reducing our required investment and simultaneously leveraging ‘in-country’ manufacturing in the world’s most populous country,” said Todd M. Pope, president and CEO at TransEnterix.
“This is a strong validation of the value of the SurgiBot platform, the world’s only abdominal surgical robot that allows surgeons to remain in the sterile field. We believe this relationship provides us with a significant opportunity to expand our product offerings of robotic solutions for hospitals and patients around the world.”
“We see a tremendous commercial opportunity for the SurgiBot System in China and are extremely enthusiastic to work with TransEnterix to bring this product to China along with the rest of the world,” said Gary Wang, President of GBIL. “The SurgiBot is unique in so many ways; we believe it can be transformational for our healthcare system.”
TransEnterix is currently focused on the commercialization of the Senhance Surgical Robotic System, a multi-port robotic system that brings the advantages of robotic surgery to patients while enabling surgeons with innovative technology such as haptic feedback and eye sensing camera control. The Senhance Surgical Robotic System is available for sale in the US, the EU and select other countries.
