TRXC Stock: TransEnterix Climbs on CE Mark

TransEnterix Inc (NYSEAMERICAN: TRXC) is screaming for the top in the market this morning, and for good reason. The company announced that it has received the CE Mark for the Intelligent Surgical UnitTM, also known as ISUTM. Here’s what’s happening:

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TransEnterix Announces CE Mark Approval

In the press release, TransEnterix said that it received CE Mark approval for its Intelligent Surgical UnitTM. ISUTM enables machine vision capabilities on the Senhance Surgical System. 

TRXC went on to explain that the approval will provide Senhance digital laparoscopic programs in Europe access to the new tech, bringing them to the forefront of surgical innovation through the use of augmented intelligence. 

This cutting edge technology provides the ability to recognize certain objects and locations in the surgical field. Ultimately, this enhances visualization and camera control over currently available surgical technologies. Moreover, the tech provides the foundation for additional augmented intelligence capabilities.

Moreover, surgical teams using the technology are able to seamlessly share the surgeon’s console view in real-time across the entire operating room. 

TRXC went on to explain that more technology is in the works. In fact, future augmented intelligence features may include 3D point-to-point measurement and anatomical structure identification, further enhancing the experience provided  by Senhance. 

Management Commentary

In a statement, Anthony Fernando, CEO at TransEnterix, had the following to offer:

Augmented intelligence powered by machine vision will be one of the primary drivers in transforming surgery to enhance the capabilities of surgeons. We have already successfully implemented augmented intelligence in the U.S. with the Senhance System after receiving FDA clearance last year. We are pleased to expand this important capability to our broader global user base.

The above statement was followed up by Dr. Amit Trivedi, chair of surgery at Hackensack Meridian Health Pascack Valley Medical Center and the first surgeon to use the tech. Here’s what he had to offer:

Real-time augmented intelligence is a powerful new capability made possible by digitizing surgery. I’ve been able to benefit from the new capabilities of the Senhance System in over 40 surgeries, to seamlessly move the camera to specific points in the surgical field and track with my instruments as I perform delicate tasks. This new technology is interpreting and analyzing information from the surgery, and the additional possibilities of this platform are very exciting.

What Analysts Think About TRXC Stock

According to TipRanks, there’s only one analyst currently covering TRXC stock. That analyst has rated the stock a Hold. 

However, it’s important to keep in mind that the analyst coverage took place quite a while ago. With the recent news, I believe an upgrade is in order.  

Risks to Consider Before Buying TRXC Stock

If you plan on investing, you plan on taking on risk. At the end of the day, risk is always going to be part of the process. When it comes to TRXC stock, the most significant risks to consider include:

  • The Company Isn’t Making Money. First and foremost, while TransEnterix does generate revenue, that revenue isn’t enough to push the company to profitability. Should the company fail to reach profitability prior to the funds in the bank running dry, it may issue and sell new shares, leading to dilution and significant declines. 
  • Penny Stock Risks. TRXC is a penny stock. That means that it comes with additional risks, including high levels of volatility and speculation as well as a largely unproven business model.

Final Thoughts

Risk is always going to be part of the equation when investing. With that said, the section above wasn’t designed to scare you off. It was designed to make sure that you’re aware of the risks before investing so that you can make an educated decision. 

If you’ve followed my work in the past, you know that I’m bullish when it comes to TRXC stock. The company is changing the game when it comes to technology enhancing the surgical experience for surgeons and medical teams, as well as outcomes for patients. 

As the company continues to launch new technologies, I believe it will become a cornerstone in the surgery tech space, setting the stage for tremendous growth ahead and making TRXC stock one for the watchlist.