Titan Medical Inc (NASDAQ: TMDI) appears to have hit rock bottom as recent price action supports further upside action. The stock has started showing signs of bottoming out, if a 100%-plus spike, from one-year lows, is anything too by.
TMDI Catalysts And Share Price Analysis
The spike has come at the back of high turnover in traded share an indication of renewed investor interest. Recent rallies follow the announcement that the company had an exceptionally productive 2018, which set the stage for robust growth going forward.
The company achieving significant milestones on the development of its SPORT single-port robotic surgery system is one of the reasons why the stock is surging. In the recent past, the company has closed a public offering from which it has raised millions of dollars poised to support the development of the flagship surgical system.
Expansion of the company’s intellectual property portfolio to 30 partners is another development that continues to strengthen the stock’s sentiments among investors. It thus does not come as a surprise that the stock has continued to trade in a bullish uptrend in recent weeks.
However, a spike to the $4.30 level appears to have experienced strong resistance triggering a pullback that could as well be a minor correction. A pullback to the $2.40 could be on the cards as part of the correction phase. Above the $2.40 support level, the stock looks set to continue powering high.
Conversely, a breach of the $2.40 support level could give short sellers a reason to continue pushing the stock lower, in continuation of the long-term downtrend. However, given the improved fundamentals, Titan Media is likely to continue bottoming out.
About Titan Medical
Titan Media casts itself as a research and development stage company. The company designs and develops computer-assisted robotic surgical technologies for use in minimally invasive surgeries. Its lead product on this front is the SPORT Surgical System.
SPORTS Surgical System Development
Titan Medical is a potential breakout play flowing the underperformance of the past year. The company achieving significant milestones on the development of the SPORT single-port robotic surgery system is one of the reasons why it is poised to bounce back.
The Chief Executive Officer, David McNally, has already confirmed that they remain well positioned to access the unaddressed U.S market for medical equipment valued at $12 billion.
“In parallel with the development of the SPORT Surgical System in 2018, we continued our efforts toward achieving future commercial success. During the year, we filed several new U.S. and international patent applications, and received nine patent grants on various aspects of single-port robotic surgery,” said Mr. McNally.
In 2019, the company intends to complete verification and validation testing which should lead to animal and cadaver studies. The company also intends to submit an IDE study application to the FDA in the first half of the year.
The company’s patent portfolio has since increased to 30 issued patents and 75 pending applications. The expansion of the patent portfolio underscores the company’s credential as an innovative leader in single-port robotic surgery technology.
“We believe our system offers advanced technology in single-port robotic surgery, which could ultimately play a substantial role in expanding robotic surgery with the goal of improving patient outcomes,” said Mr. McNally.
Titan Medical remains well positioned to complete development of the SPORT surgical equipment as well as pursue regulatory approval on its balance sheet receiving a significant boost. The company is fresh from closing a public offering whereby it issued 7.4 million units for gross proceeds of $25 million
Titan Medical has achieved significant milestones on the development of its robotic surgical system, seen as a key driver of price action going forward. Regulatory approval of the surgical system should pave the way for the company to be a key player in the $12 billion a year, surgical equipment market as the system has the potential to revolutionize how invasive surgeries are carried out.
The company’s balance sheet receiving a $25 million boost means the company is well positioned to oversee development as well as regulatory approval of the flagship product. The stock has already started to elicit renewed investor interest signaling that the upside action will continue to gain momentum in light of the recent developments.
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Disclosure: We have no position in TMDI and have not been compensated for this article.