Dive Brief:
- Vicarious Surgical said Wednesday that it will outsource some components of its robot’s development to lower spending as it prepares the system for a clinical trial and regulatory submission.
- The company has already reorganized some internal teams and reduced headcount in some areas as part of a restructuring, new CEO Stephen From said on an earnings call.
- Vicarious expects to finalize the robot’s design toward the end of 2026, From told investors. “Our main priority remains achieving design freeze of the production-equivalent system, the version that includes all features and specifications required for commercialization,” From said.
Dive Insight:
Vicarious was started in 2014 to improve upon limitations its founders saw in robotic platforms at the time. The company attracted financial backing from Bill Gates and others before going public in 2021 through a merger with a special purpose acquisition company that raised $220 million.
However, the company has faced a series of delays in its planned submissions to the Food and Drug Administration. Soon after its new CEO came on board in August, Vicarious said it was abandoning plans to begin a clinical trial by the end of this year and would focus on completing the design for the commercial version of the system.
From said the company received feedback from investors during a fundraising process in October that led to the decision to pursue outsourcing. Vicarious has hired a consulting firm to identify potential partners and expects to outsource elements such as capital equipment and certain non-core software functions.
The company will continue to invest in the areas that differentiate its technology, such as the platform’s miniaturized robotic arms and immersive visualization system, according to From.
“The goal is to enter 2026 with a disciplined plan that meaningfully reduces burn while maintaining momentum toward design freeze,” the CEO said. Meanwhile, From said the company strengthened its balance sheet in October with about $5.9 million in gross proceeds from a registered direct offering.
Vicarious reported a third-quarter net loss of $11.1 million, compared with a net loss of $17.1 million a year ago. The company expects a cash burn of about $50 million in 2025.
In a message on the company’s website Thursday, From also said Vicarious would work to make the development of its platform more transparent by providing regular progress updates.
