ARTICLE SUMMARY:
Two years ago, TransEnterix sought to convert its manual MIS platform into a novel surgical robot – and adopted an even more novel financing strategy to do it.
Two years ago, executives at minimally invasive surgery (MIS) pioneer TransEnterix Inc. stood at a crossroads.
Ever mindful of the resistance of many general surgeons to radical innovation, the company had designed its novel Spider MIS platform not to revolutionize minimally invasive surgery, but rather to mimic traditional surgery as closely as possible – offering true right and left manipulation and enhanced visualization using a single-port approach. And Spider had begun to catch on. The next logical step would be to make a major commitment of funds to launch Spider globally. But advances in robotic technology and the introduction of a single-port robot by market leader Intuitive Surgical Inc. had begun to convince some surgeons there might be a role for a robot in general surgery after all.
Embracing the concept of powered laparoscopy rather than telemedicine per se, TransEnterix’ management team was eager to pursue the conversion of Spider into a robotic platform. Done right, the opportunity for a surgical robot in general surgery would dwarf that of the manual single-port platform. The challenge: the technical complexity of creating the robot would require a significant amount of money for a company that had already raised $75 million. To raise the capital they needed, TransEnterix’ management team turned to a financing strategy that is anything but conventional: a reverse merger.
