Company Overview
Microbot Medical Inc. (MBOT) is a pre-clinical medical device company at the forefront of revolutionizing the field of minimally invasive surgery through its innovative robotic technologies. With a steadfast focus on enhancing patient outcomes and redefining surgical practices, Microbot Medical has embarked on a remarkable journey to push the boundaries of what’s possible in the realm of endovascular interventions.
History and Evolution
Founded in 1988 as Cellular Transplants, Inc., the company underwent several name changes throughout its history. It was renamed Cyto Therapeutics, Inc. in 1992 and later became StemCells, Inc. in 2000. The company’s current incarnation as Microbot Medical Inc. came about in 2016 following a merger with Microbot Medical Ltd., a private medical device company organized under the laws of the State of Israel.
Core Technology and Products
Since its transformation into Microbot Medical, the company has been leveraging its expertise in micro-robotic technologies to develop groundbreaking solutions for the medical industry. Microbot Medical’s flagship product, the LIBERTY Endovascular Robotic Surgical System, represents a significant leap forward in the way surgical robotics are utilized in endovascular procedures.
The LIBERTY system is designed to address critical challenges in the healthcare sector, offering a compact, fully disposable, and remotely controlled robotic platform that aims to revolutionize the way endovascular interventions are performed. By eliminating the need for large, cumbersome capital equipment and dedicated catheterization laboratories, the LIBERTY system has the potential to improve accessibility, reduce radiation exposure, and enhance overall surgical efficiency.
Microbot Medical has made significant progress with the LIBERTY system, having successfully completed multiple preclinical studies with a 95% success rate in reaching pre-determined vascular targets and no notable complications. In October 2023, the company announced the successful completion of a pivotal preclinical study, with 100% usability and technical success. The results from this study will support Microbot’s Investigational Device Exemption (IDE) submission to the FDA to commence human clinical trials.
In addition to the LIBERTY system, Microbot Medical has expanded its product portfolio through strategic acquisitions. In October 2022, the company acquired the assets, including intellectual property, of Nitiloop Ltd., a company developing intraluminal revascularization devices with an anchoring mechanism and integrated microcatheter. This technology, designated as NovaCross, NovaCross Xtreme, and NovaCross BTK, is expected to be incorporated into Microbot’s “One Done” feature for the LIBERTY system.
Challenges and Milestones
Microbot Medical’s journey has not been without its challenges, however. In 2023, the company faced a significant setback when the State of Israel, where its primary operations are based, suffered a surprise attack, leading to ongoing military operations and armed conflicts. Despite these external disruptions, Microbot Medical has remained steadfast in its commitment to advancing its technology and navigating the regulatory landscape.
In September 2024, Microbot Medical announced the successful enrollment of 50% of the patients in its pivotal human clinical trial for the LIBERTY Endovascular Robotic Surgical System. This milestone represents a crucial step toward the company’s goal of submitting its 510(k) application to the U.S. Food and Drug Administration (FDA) by the end of 2024, paving the way for potential commercialization in the first half of 2025. The company also plans to pursue CE Mark approval in the second half of 2026 to market the LIBERTY system in Europe and other regions.
Financials and Liquidity
Financially, Microbot Medical has relied on a combination of government grants, the issuance of capital stock, and convertible debt to fund its research and development efforts. As of September 30, 2024, the company had a net working capital of approximately $3.60 million, consisting primarily of cash, cash equivalents, and marketable securities. The company’s cash and cash equivalents balance stood at $479,000, with total cash, cash equivalents, and marketable securities of approximately $4.34 million, excluding restricted cash.
Microbot Medical has not generated any revenues to date and has incurred net losses since inception. For the fiscal year 2023, the company reported a net loss of $10.74 million, with operating cash flow (OCF) of -$8.53 million and free cash flow (FCF) of -$8.57 million. In the most recent quarter (Q3 2024), the net loss was $3.21 million, with OCF and FCF both at -$2.76 million. The increase in net loss, OCF, and FCF in the most recent quarter compared to the prior year quarter was primarily due to higher research and development and general and administrative expenses as the company continues to invest in the development of its LIBERTY Endovascular Robotic Surgical System.
Research and development expenses for the nine months ended September 30, 2024, were $4.65 million, while general and administrative expenses were $3.55 million. Since its inception in November 2010, Microbot Medical has raised cash proceeds of approximately $72.8 million and has incurred a total cumulative loss of approximately $87.5 million.
Notably, Microbot Israel, a subsidiary of the company, has received grants from the Israeli Innovation Authority (IIA) for participation in research and development since 2013, totaling approximately $1.88 million. This includes a recent grant of approximately NIS 1.62 million ($447,000) approved by the IIA on June 1, 2023, to further finance the development of the manufacturing process of the LIBERTY Endovascular Robotic Surgical System.
In terms of liquidity, Microbot Medical maintains a strong financial position with no outstanding debt, resulting in a debt-to-equity ratio of 0. The company’s current ratio and quick ratio both stand at 3.64, indicating a healthy short-term liquidity position. However, it’s worth noting that the company does not have any disclosed available credit lines.
Risks and Challenges
Despite its promising progress, Microbot Medical’s journey has not been without its risks. The company’s heavy reliance on government grants and the successful completion of its clinical trials pose significant challenges. Additionally, the ongoing military conflict in Israel and the potential impact on the company’s operations remain a concern.
The company’s continued need for additional funding to support its research, development, and regulatory approval efforts highlights the challenges it faces in transitioning its pre-clinical technologies to commercial products. Microbot Medical was also named as a defendant in a lawsuit related to its 2017 financing, which was settled in 2024, though no other major scandals or short seller reports have been disclosed.
Future Outlook
Nevertheless, Microbot Medical’s unwavering commitment to advancing its LIBERTY Endovascular Robotic Surgical System and its dedication to improving patient outcomes through innovative micro-robotic technologies have positioned the company as a key player in the rapidly growing surgical robotics market. The global market for robotic surgical systems and accessories is expected to grow from $10 billion in 2024 to $15.8 billion by 2030, driven by the increasing demand for precise, minimally invasive surgical procedures.
As the company continues to navigate the regulatory landscape and build out its commercial infrastructure, investors will closely follow Microbot Medical’s progress as it strives to bring its transformative technology to the forefront of the healthcare industry. The company’s focus on the development of its LIBERTY Endovascular Robotic Surgical System and its acquisition of the NovaCross technology platforms demonstrate its commitment to advancing minimally invasive surgical solutions.
Strategic Decisions
It’s worth noting that Microbot Medical has made strategic decisions to focus on its core business. In January 2018, the company entered into an agreement with CardioSert Ltd. to acquire certain patent-protected technology. However, as part of a cost reduction plan enacted in May 2023, Microbot Israel terminated this agreement in August 2023 and ceased its research and development efforts for the acquired technology. Subsequently, in July 2024, the company transferred the technology back to CardioSert for nominal consideration, further streamlining its operations and focusing on its primary objectives.
As Microbot Medical continues to advance its LIBERTY Endovascular Robotic Surgical System through clinical trials and regulatory approvals, the company remains focused on its goal of revolutionizing the field of minimally invasive surgery. While the path to commercialization presents significant challenges, the potential impact of Microbot Medical’s innovative technologies on patient care and surgical practices positions the company as an intriguing player in the evolving landscape of medical robotics.
Disclaimer: This article is for informational purposes only. It does not constitute financial, legal, or other types of advice. While every effort has been made to ensure the accuracy of the information presented here, the author and the publisher do not make any guarantees about the completeness, reliability, and accuracy of this information.