TransEnterix hopes to raise $20.3M in public offering for surgical robotics

TransEnterix Surgical Inc. this week said that it has priced a public offering of 28 million shares of its common stock for gross proceeds of approximately $20.3 million.

The Research Triangle Park, N.C.-based company also granted the underwriter a 30-day option to purchase approximately $3 million in additional shares of common stock. TransEnterix intends to use the net proceeds for general corporate purposes, including working capital.

TransEnterix said it will sell the shares itself in one or more transactions, at negotiated prices or prevailing market prices. Cantor Fitzgerald & Co. acted as sole book-running manager for the offering.

TransEnterix development continues

The global market for surgical robots will grow from $3.9 billion in 2018 to $6.5 billion by 2023, at a compound annual growth rate (CAGR) of 10.4%, predicted Markets and Markets. Similarly Global Market Insights estimated a value of $5.5 billion in 2018 and a CAGR of 24.4% CAGR from 2019 to 2025. However, the maturity and price of such systems remains a hurdle for adoption, as does the lack of familiarity among physicians and health care providers and insurers.

In May, Japanese regulators approved TransEnterix’s Senhance robotic surgical system for certain laparoscopic procedures, and Advent Health was the first hospital to use it for gynecological procedures. The company also received approval from the U.S. Food and Drug Administration for hernia and gallbladder procedures.

In July, TransEnterix sold its AutoLap division to Great Belief International Ltd. for $47 million. Last month, share prices dropped after TransEnterix disclosed disappointing second-quarter sales.

To learn more about TransEnterix’s stock prices, visit The Robot Report‘s sibling site, MassDevice.

The Robot Report is launching the Healthcare Robotics Engineering Forum, which will be on Dec. 9-10 in Santa Clara, Calif. The conference and expo will focus on improving the design, development and manufacture of next-generation healthcare robots. Learn more about the Healthcare Robotics Engineering Forum, and registration will be open soon.