Canadian surgical device manufacturer Titan Medical has announced that it plans to merge with imaging guidance company Conavi Medical, with the new combined entity pushing ahead with the latter’s Novasight Hybrid system.
The agreement means that Titan will acquire all of the issued and outstanding shares of Conavi, with shareholders being provided equivalent common shares in the newly amalgamated company which plans to continue the development of Conavi’s Novasight Hybrid System following its 510(k) approval from the US Food and Drug Administration (FDA).
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The news follows a turbulent period for Titan Medical. Last June, it announced that it would be terminating its research and development arms to primarily focus on the development of robotic-assisted surgical devices. Pivoting its business away from manufacturing medical devices and into licensing and managing portfolios of intellectual properties and medical device patents.
Conavi’s CEO Thomas Looby said: “This planned merger comes at a pivotal moment in the evolution of our company as we continue to advance the Novasight Hybrid System, which provides simultaneous and complementary data with which to better inform patient care while offering providers a more cost- and space-effective option when purchasing intravascular imaging equipment.”
As a result of this merger, Titan Medical has announced that it plans to delist itself from the Toronto Stock Exchange and instead apply to have the company listed on the TSX Venture Exchange, an alternative Canadian stock exchange based out of Calgary.
The March 18 announcement saw the company’s stock fluctuate with shares sitting at an average of C$0.090 before the announcement on March 15, before rising to C$0.10 immediately following the announcement and then settling back down at C$0.090 per share.
GlobalData’s Medical Device Intelligence Centre details how Titan Medical currently only has one Class III medical device active in its pipeline – the Enos Robotic Single Access Surgical System. Three other products all relating to the company’s Amadeus surgical robot system remain inactive following the company’s decision to cease R&D.
Titan’s interim CEO Paul Cataford said: “This merger is the result of a thoughtful and careful review of strategic options and reflects the continued commitment of our management team and board of directors to deliver value to shareholders.
“Conavi is an exciting commercial-stage company with groundbreaking technology and an accomplished management team. We are confident in their ability to continue to drive adoption of the Novasight Hybrid System.”
The deal follows several mergers and acquisitions across the medical device space, including radiology company Deepc’s acquisition of medical imaging software, the Osimis Platform, last month. In addition, US private equity company Thomas H Lee Partners acquired medical technology management and service solutions provider Agiliti, valuing the business at approximately $2.5bn.
