Dallas, Texas 07/02/2015 (Financialstrend) – Transenterix Inc (NYSEMKT:TRXC) remains confident of an FDA approval of its new surgical tool SurgiBot System that it plans to market to hospitals across the US. The company has already set aside $50 million for commercialization of the surgical tool upon being given the go-ahead by the agency.
Hiring of Sales reps
A sales team is needed as the tool will cost hundreds of thousands of dollars of which many hospitals will want to understand how it works before placing orders. CEO, Todd Pope, has already confirmed plans to hire 5 to 6 sales representatives by early next year. The representatives will help hospitals staff get the most out of the SurgiBot System.
The FDA application according to Transenterix Inc (NYSEMKT:TRXC) marks the end of a lengthy development process that brought the product to realization. The company has already raised more than $100 million from the public market.
The medical device company recently carried out a public offering of its common shares. With Stifel and RBC Capital Markets acting as the joint book-running managers, the company offered 16, 666, 667 shares at a share price of $3. Transenterix Inc (NYSEMKT:TRXC) expects to generate $46.2 million from the offering.
Most of the funds are to be used to take care of costs arising from research and development activities and for commercialization and sale of the SurgiBot System. The company is betting big on the new product, which it hopes will turn around its fortunes on the earnings front having incurred a net loss of $10.1 million in the first quarter
The net loss came to being, Transenterix Inc (NYSEMKT:TRXC) having spent $7.5 million on research and development expenses as well as $2 million on administrative expenses. A signed agreement with Cantor Fitzgerald early in the year allows the company to raise more cash when needed through the sale of shares through an At-the-market offering.