Form 8-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

April 2, 2014

Date of Report (date of earliest event reported)

 

 

TransEnterix, Inc.

(Exact name of Registrant as specified in its charter)

 

Delaware   0-19437   11-2962080

(State or other jurisdiction of

incorporation or organization)

 

(Commission

File Number)

 

(I.R.S. Employer

Identification Number)

635 Davis Drive, Suite 300

Morrisville, North Carolina

(Address of principal executive offices)

919-765-8400

(Registrant’s telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 


Item 8.01 Other Events.

TransEnterix, Inc. (the “Company”) updated its Company presentation (the “Presentation”) on April 2, 2014. A copy of the Presentation is attached hereto as Exhibit 99.1 and is incorporated herein by reference. The Presentation will be used during investor meetings beginning on April 2, 2014.

Item 9.01 Financial Statements and Exhibits.

 

Exhibit
No.

  

Description

99.1    TransEnterix, Inc. Company presentation dated April 2, 2014

 


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

    TRANSENTERIX, INC.
Date: April 2, 2014     /s/ Joseph P. Slattery
    Joseph P. Slattery
   

Executive Vice President and Chief

Financial Officer

 

 

 

EX-99.1
Todd M. Pope, President & CEO
Joe Slattery, EVP & CFO
April 2, 2014
Exhibit 99.1


Any statements contained in this presentation that do not describe historical facts, including
statements about the beliefs and expectations of TransEnterix, Inc. (“TransEnterix,”
"we" or "our"),
may constitute forward-looking statements as that term is defined by the United States Private
Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by
terminology such as "will," "expect," "anticipate," "future," "intend," "plan," "believe," "estimate,"
"confident" and similar statements. Any forward-looking statements contained herein are based on
current expectations, but are subject to a number of risks and uncertainties that may cause actual
results to differ materially from expectations.
Potential risks and uncertainties include the risks outlined in this presentation and TransEnterix’
filings with the U.S. Securities and Exchange Commission, including the benefits and opportunities
of surgical robotics, whether the combined company formed as a result of the Sept. 2013 merger of
TransEnterix and SafeStitch Medical, Inc. will be successful in 2014 and beyond, the success and
market opportunity of our continuing and new product development
efforts, including the SurgiBot
system, the pace of adoption of our product technology by surgeons, the effect on our business of
existing and new regulatory requirements, the outcome of coverage and reimbursement decisions
by the government and third party payors, and other economic and
competitive factors. We caution
readers not to place undue reliance upon any forward-looking statements, which speak only as of
the date made. We do not undertake or accept any obligation or undertaking to release publicly any
updates or revisions to any forward-looking statement to reflect any change in our expectations or
any change in events, conditions or circumstances on which any such statement is based.
2
Cautionary Statement


Advancing Surgery
Through Innovation


4
Issuer:
TransEnterix, Inc.
Ticker (Exchange):
TRXC (NYSE MKT)
(1)
Amount Offered:
$50 million
Over-Allotment Option:
15%
Lock-up Provision:
90 days
Expected Pricing:
April 10, 2014
Bookrunners:
Stifel / RBC Capital Markets
Use of Proceeds:
For research and development, sales and
marketing, and commercialization related to our
SurgiBot
System, working capital and other
general corporate purposes.
(1)
Authorized
for
listing
upon
completion
of
offering.
Currently
listed
as
“TRXCD”
on
OTC:BB
Transaction Overview
TM


Investment Highlights
5
The SurgiBot System is currently under development
Surgical robotics
Developing patient-side robotic platform: SurgiBot
Addresses unmet needs in today’s robotic offerings
Cost effective
Broad procedure applicability
Large addressable market
~2M US procedures
Strong management team
Technology
Focus
Solution
Market
Experience


6
TransEnterix
founded
FDA 510(K) clearance for
Spider Surgical System
CE Mark clearance and release
of Spider Surgical System
>3,500 SPIDER cumulative
procedures performed to date
Began SurgiBot development
SurgiBot preclinical labs
2006
2009
2010
2012
2013
Company History


7
Surgical Progress = Less Invasive
Open
Surgery
Rigid
Laparoscopy
(1989)
Flexible
Laparoscopy
(2010)


Internal (intra-abdominal)
triangulation
Flexible, articulating instruments
for dissection and retraction
True left/right instrumentation
Lower profile port of access
Over 3,500 procedures
performed
Broad procedural mix
8
Spider Surgical System
Enabling Flexible Laparoscopy


SurgiBot
Powered and Robotically-enabled
Next-generation Platform*
*The SurgiBot System is currently under development
TM


10
Benefits of Surgical Robotics
Improved
dissection and
retraction strength
Enhanced precision
and control
Improved surgeon
ergonomics
Advanced
visualization
Benefits of
Surgical
Robotics


Source: ISRG Investor Presentation, 2/21/2014
11
Worldwide daVinci Procedures


12
(2)
ISRG investor call, 1/23/2014
The SurgiBot System is currently under development
(1)
(1)
Multi-Port
Surgeon scrubbed-in
Multi-quadrant utility
Reduced incisions
Internal triangulation
Articulating instruments
Space for assistant
Cost
~$1.5M
(2)
~$500K
  
“Single-site” upgrade reduces incisions, with added
cost and loss of articulating instruments
(1)
SurgiBot
Purpose Built for Abdominal Surgery


13
The SurgiBot System is currently under development
Surgeon scrubbed-in
Easily repositioned for multi-
quadrant surgery
Flexible, articulating channels &
instruments
Steerable 3DHD
Small, mobile platform
Cost effective platform
SurgiBot
First Patient-side Robotic Platform


14
3DHD
Optics/Cart
SurgiBot
The SurgiBot System is currently under development
SurgiBot
First Patient-side Robotic Platform


15
The SurgiBot System is currently under development
[Video of SurgiBot System Prototype]
SurgiBot
First Patient-side Robotic Platform


16
Targeted US
Procedures
160K
1,140K
363K
230K
~2M US
Laparoscopic
Procedures
Procedure Market Opportunity
Bariatric Surgery
Cholecystectomy
Colorectal
Gynecology/Urology
Source: Millennium Research Group US Markets Laparoscopic Devices 2014


Large Addressable Market
17
Source: CDC
Over 5,000 Hospitals in the United States
# of Beds
1,566
2,054
930
458
Under 50
50-200
200
-
400
Over 400


18
Hospitals without
Robotic Capability
Hospitals with
Robotic Capability
Invested in the strategic
and competitive value of
robotic surgery
ROI expectations
changing/under pressure
Potential for
diversification of robotic
solutions
Procedures
Price
Facilities
Hospital Market Opportunity
Current robotic offerings
are not cost effective
System price
Limited procedure volume
Surgery centers –
untapped market for
robotics
Losing market share to
robotic facilities
Large underpenetrated
OUS opportunity


Significant Base of Underserved Hospitals
19
>3,000 w/ <300 
beds
>80% lack robotic 
offering
Losing market share 
to robotic facilities
Represent >800K 
target annual 
procedures
~5,000 in US
Economics driving 
rapid procedure 
growth
SurgiBot will offer 
versatility and cost 
benefits
Mid/Small
Hospitals
Surgery Centers


Price
20
Traditional
Laparoscopy
>$10B Revenue
Low Growth
Surgical Robotics
>$2B Revenue
High Growth
Combining Advanced Technology AND
Maximizing Value


21
Highlights –
Instrumentation
Instrumentation Needs
By Procedure
Status
Chole
Bariatrics
GYN
SPIDER
SurgiBot
Grasper
Launched
Developed
Dissector
Launched
Developed
Hook
Launched
Developed
Clip Applier
Launched
Developed
Shears
Launched
Developed
Suction Irrigator
Launched
Developed
Needle Driver
Launched
Developed
Advanced Energy
Q2 2014
Development
Bipolar Energy
3
rd
Party
Development
Stapler
3
rd
Party
3
rd
Party
The SurgiBot System is currently under development


Operating Capabilities & Talent
22
Rapid Prototyping
R&D Team
Broad Experience
cGMP Manufacturing


Management Team
23
Prior Experience
Todd M. Pope
President and Chief Executive Officer
Joe Slattery
EVP and Chief Financial Officer
Richard Mueller
Chief Operating Officer
Mohan Nathan
Vice President of Global Marketing   
Tammy Carrea
Vice President, Quality and Regulatory Affairs
Nicole Bell
Vice President, Research and Development
Larry Pope
Vice President, Operations


Phillip Frost, M.D.
CEO and Chairman of OPKO Health
Chairman of Teva Pharmaceuticals
Jane Hsiao, Ph.D., MBA
Former Chairman of SafeStitch
Vice Chairman and CTO of OPKO Health
Aftab Kherani, M.D.
Principal of Aisling Capital
Richard Pfenniger, Jr.
Former Chairman/CEO of Continucare
Former CEO of Whitman Education Group
Paul LaViolette
Chairman of TransEnterix
Partner, SV Life Sciences
Todd Pope
President and Chief Executive Officer, TransEnterix
Dennis Dougherty
Founder, Intersouth Partners
David Milne
Managing Partner, SV Life Sciences
William Starling
Managing Director, Synergy Life Science Partners
24
Board of Directors and Healthcare
Investors
Board of Directors
Healthcare Investors


Regulatory Strategy
25
510(k) pathway
General intended use for laparoscopic abdominal access
Design &
Pre-clinical Testing
Pre-submission     
FDA Meeting
Regulatory
Clearances
Global Launch
2013
2014
2015
First Human
Procedures
Regulatory
Submissions


Financial
Information


Recurring Revenue Model
27
Instruments and
Accessories
Service
Capital Equipment
US Pricing:
The SurgiBot System is currently under development
Market-specific pricing
Distributors provide service/support
International:
Capital sale ~$500K
Instruments ~$1,000-1,500/procedure
Service ~$50K/year


Cash
Balance at 12/31/2013 $16.2M
Q4 ‘13 burn $8.7M, incl. $0.9M debt service and $0.7M capital
equipment
Capital Sales Reps
Hire 5-8 early 2015
~15 by launch
~30 to cover US
Supported by clinical and field service reps
Gross Margin
SurgiBot system >= 50%
Instruments scaling to >60%
Service break-even requires scale
Financial Highlights
28
The SurgiBot System is currently under development


FDA Pre-filing Submission -
Q1
Launch
Flexible
Advanced
Energy
Device
-
Q2
Clinical SurgiBot Cases Begin -
Q3
SurgiBot FDA/CE Filings -
Q4
2014 Key Objectives
29
Completed     


Surgical robotics
Focus
Developing patient-side robotic platform: SurgiBot
Technology
Addresses unmet needs in today’s robotic offerings
Cost effective
Broad procedure applicability
Solution
Large
addressable
market
~2M
US
procedures
Market
Strong management team
Experience
Investment Highlights
30
The SurgiBot System is currently under development