TITAN MEDICAL INC COM NPV (OTCMKTS:TITXF) Is A Strong Biotech Pick

Long time readers will likely already be familiar with TITAN MEDICAL INC COM NPV (OTCMKTS:TITXF). It's a company that we have covered repeatedly here at Insider Financial and one that we have long felt is due for upside revaluation. Well, that's not technically correct. Our argument is that this company's technology and, specifically, the potential of said technology, is extremely valuable but is being held back right now by a number of barriers to market, most notably, resistance to technology adoption in the medical space. TITXF Daily ChartIn line with this argument, we have suggested that Titan could be a great long-term pick, but between now and it eventually hitting its potential, we are likely to see plenty of volatility in share price.Back at the start of July, however, we did make a shorter-term prediction – that Titan would gain strength during the third quarter of this year.Here's the piece that outlines and supports this suggestion.Our thesis was relatively simple. The company had just raised some capital and, alongside the raise, had published some detailed timeframe expectations associated with the development of its core product. This detail served to remove a large portion of the risk (which was previously rooted in uncertainty about when Titan could get its technology to market and how much it was going to cost) and, in doing so, made the stock far more attractive to a portion of investors that previously would've turned down the chance of an allocation.At that time, the company was trading for $0.11 a share. Right now, midmorning US on Monday, Titan goes for $0.23 apiece, up 109% since we put forward the above argument.So what has driven the action?Primarily, this release.The company announced on September 18 that it had installed the first ever version of its Sport Surgical System at Florida Hospital Nicholson Center. For those new to this company, this system is Titan's lead asset and it is a type of robotic surgery system that allows surgeons to conduct complex surgical procedures through the use of a separate workstation in an operating theatre. The workstation allows for a 3D high-definition view of the patient and an endoscopic view inside the patient's body during minimally invasive surgery procedures.It's a neat technology but, as with any new healthcare technology, it needs validating by way clinical trials and, along the way, Titan needs to recruit and train a fleet of surgeons that will be willing to use the system in favor of current methods (primary, manual surgery, but also a couple of competing products).So, that's why the first installation is so important – it provides the company an opportunity to actually get moving with the above-mentioned validation and, in doing so, start collecting the data that's going to underpin a registration application in the US ahead of any commercialization effort.And on September 25, we got word that the company had started collecting said data, with the system being used to perform successful procedures. Anybody interested in taking a look at these procedures can do so here.So with things finally looking as though they're getting moving for Titan, there is plenty of upside potential as we move into the final quarter of 2017 and beyond. As we outlined previously, there is a degree of dilution risk as the company is going to need capital to further develop the software for its system and to conduct the validation clinical trials. With that said, however, the reward offer here dramatically outweighs the downside of any dilution – assuming the programs that the capital raised goes towards funding play out successfully.Our previous coverage of Titan Medical is here. We will be updating our subscribers as soon as we know more. For the latest updates on TITXF, sign up below!Image courtesy of Victory of the People via FlickrDisclosure: We have no position in TITXF and have not been compensated for this article.