Medical device firm TransEnterix has signed an agreement to sell the SurgiBot System and its assets to Great Belief International (GBIL).
SurgiBot System is a single-port laparoscopic surgical platform that has been robotically enhanced.
After completion of the deal, GBIL will manufacture the system in China and obtain clearance from the Chinese Food and Drug Administration (CFDA).
The firm also plans to form a nationwide distribution agreement with China National Scientific and Instruments and Materials (CSIMC) to enhance commercial potential and optimise post-sale services for national hospitals.
TransEnterix is set to receive around $29m and will retain the option to distribute or co-distribute the system outside of China.
From the total deal, $7.5m will be paid by the end of this year, another $7.5m in March next year and the remaining $14m on receiving Chinese regulatory approval or within five years, whichever is earlier.
TransEnterix president and CEO Todd Pope said: “The relationship announced today with GBIL will allow us to advance the SurgiBot System towards global commercialisation, while significantly reducing our required investment and simultaneously leveraging in-country manufacturing in the world’s most populous country.
“We believe this relationship provides us with a significant opportunity to expand our product offerings of robotic solutions for hospitals and patients around the world.”
In October, TransEnterix obtained the FDA 510(k) clearance for its Senhance Surgical Robotic System designed to allow surgeons to precisely direct small surgical instruments.
The robotic surgery platform includes haptic feedback for security and eye-sensing camera for control.