Here's How We Scored A 375% Win For Our Readers On Transenterix Inc (NYSEMKT:TRXC)

Back at the start of May this year, we published this piece highlighting a potential play in Transenterix Inc (NYSEMKT:TRXC).The company had just taken a hit on the back of an equity issue announcement and was trading at around a 40% discount to its preannouncement pricing at the time of our coverage. We suggested that this discount might be a great opportunity to pick up shares ahead of major upside catalyst.Turns out we were on the money.At that time, Transenterix traded for around $0.65 a share, having dipped from a little over $1.10 on the announcing of the above-mentioned equity issue. This week, the catalyst we were looking for hit press and at the close of play on Monday the company went for $2.88 apiece. Premarket activity on Tuesday has added another 7% to this run and Transenterix will open today for $3.07 a share. TRXC Daily ChartFrom the price at which we highlighted the stock that's a close to 375% appreciation.So what happened and what's next?For those that missed our initial coverage, it might be worth checking back here to get caught up on the detail. For anybody that doesn't want to click away, however, our thesis on this one was relatively simple. The company has spent the last few years developing a product called the Senhance Surgical Robotic System, which is essentially a set of robotic arms with surgical implements attached to the end, which connects to a control unit, at which the surgeon stands and conducts remote-controlled surgery (using the robotic arms) via a large HD screen.This sort of system already exists and the leader in the space right now (and the only real player in the space) is called Da Vince and it generates in excess of $2 billion annually for Intuitive Surgical, Inc. (NASDAQ:ISRG).If Transenterix could get Senhance approved in the US, it would only take a small portion of the existing surgical robot market to allow the company to generate revenues far in excess of its market capitalization. This approval, therefore, was the catalyst we were looking out for.The company submitted to the FDA by way of a 510(k) application in April 2017. These sorts of applications are notoriously difficult to predict in terms of timeframe, but we suggested that it's not unreasonable to expect a decision before the end of 2017.And as of this week, that's what we got.The FDA just granted regulatory clearance for the product, meaning it's the first new market entrant into the field of abdominal surgical robotics since the year 2000. Consider how much technology has advanced in the last 17 years alone and it's clear that Senhance could have a significant advantage over the existing technologies in the space and, by proxy, that the company shouldn't have too much of a problem attracting market share.So what's next?Now it's all about executing on a commercialization strategy. Management is going to hold a conference call today, as part of which we expect said commercialization strategy will be discussed, so we will be listening in for any clues as to how Transenterix intends to wrestle market share from Intuitive going forward. As mentioned, there are some distinct technological differences between the two competing systems, including haptic feedback, eye-sensing camera control, and fully reusable instruments, which will form a key component of the company's sales pitch near term.Keep in mind that there is a chance we will see a near-term raise and that, in all likelihood, said raise will be dilutive. Companies at this end of the space need commercialization capital, so it's nothing new, but it's something to consider nonetheless ahead of any potential exposure.Bottom line, this one is up triple-digit percentage points but, if it can execute on a strong strategy near term, it won't need too much in the way of success to push share price higher.Check out our previous coverage of this one here. We will be updating our subscribers as soon as we know more. For the latest updates on TRXC, sign up below!Image courtesy of Peat Bakke via FlickrDisclosure: We have no position in TRXC and have not been compensated for this article.