Medtronic Expands Robot Portfolio with Titan Medical Deal

Medtronic, plc. took another step to cut into Intuitive Surgical, Inc.’s grip on the robot-assisted surgical market by signing a licensing deal with Titan Medical, Inc. Intuitive Surgical is the Sunnyvale, California-based maker of one of the most popular surgical robots, the Da Vinci. The $31 million deal with Toronto, Canada-based, Titan Medical, Inc. is the latest in a series of investments Medtronic has made to become a major player in the future of robot-assisted surgery.

First, Medtronic acquired Mazor Robotics, Inc. for $1.7 billion in December 2018 after two years into a $42 million licensing and distribution deal. The Mazor X robot was launched in early-2019 for specific spine procedures. In September 2019, the company introduced the Hugo robot-assisted surgery (RAS) system, developed in-house, to compete with the Da Vinci. The Hugo allows for one or more, single-armed robots to be used during a surgery. Next, in February 2020, Medtronic acquired Digital Surgery, LTD., a London-based developer of surgical artificial intelligence and digital solutions; an acquisition likely intended to further enhance the capabilities of the Hugo system.

The current deal with Titan Medical includes licensing of some of the company’s current intellectual property. Titan Medical can continue to develop its robot business, which includes the SPORT surgical system, a single-port, endoscopic, robotic surgery system. Part of the deal requires Titan to independently raise another $18 million over the next four months. Titan Medical was on the brink of closure after suspending development of its robotic system in November 2019 due to lack of funding.

The Hugo RAS, Titan Medical’s SPORT system, as well as Intuitive’s Da Vinci, are intended for soft tissue surgeries and are controlled by surgeons. They provide the ability to hold additional tools, and make small, controlled movements that are nearly impossible by hand. Systems like Medtronic’s Mazor X, however, act more independently by taking inputs from imaging and pre-surgical planning to align tools and implants. Medtronic has estimated that only 2% of surgeries being performed that could use a robot are currently using a robot. The company has shown that they want to control the remaining 98%. It is not yet apparent if Medtronic will incorporate aspects of the Titan SPORT system into its own Hugo, or develop a separate system based on the newly licensed technology.