4DMedical (ASX:4DX) share price flies 5% higher on purchase order

The software technology company just announced a lucrative sale…

| More on:
four excited doctors with their hands in the air

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The 4DMedical Ltd (ASX: 4DX) share price is on the move this Thursday morning.

This follows the company's latest announcement regarding a purchase order for preclinical scanner.

At the time of writing, 4DMedical shares are trading at $1.34, up 5.51%.

What did 4DMedical announce?

In today's statement, 4DMedical advised it has sold one Permetium preclinical scanners to the University of Michigan in the United States.

The $600,000 purchase will see the University of Michigan deploy the medical device to its Centre of Molecular Imaging. From there, it will be used to perform safe and quick quantitative imaging of lung function and vascular changes.

The Permetium preclinical scanner adopts the company's patented XV Technology in analysing lung airway disease. Utilising the hospital's existing systems, a series of x-ray images are taken from different angles simultaneously.

The XV Technology then uses image-processing methods to measure the motion in lung tissue, calculating ventilation at each stage of breath. The measurements are then recorded and visualised as a coloured heat-map to identify ventilation deficits.

The United States National Institutes of Health (NIH), a government agency responsible for biomedical and public health research, will fund the purchase. While this includes the preclinical scanner and its software, additional scans required will generate Software-as-a-Service (SaaS) revenue for 4DMedical.

It is expected that the preclinical scanner will be shipped to the University of Michigan in the next few months.

Commenting on the sale, 4DMedical founder and CEO Andreas Fouras said:

We are very pleased to support the University of Michigan's activities with our XV Technology and preclinical scanner. This provides the organisation with the only commercially available device for ultra-high- resolution imaging and quantification of cardiothoracic disease models. The sale of preclinical scanners and XV Technology software to opinion-leading sites will provide further evidence of the effectiveness of our technology and help drive clinical demand for 4DMedical's software products.

About the 4DMedical share price

Despite today's gain, 4DMedical shares have disappointed investors, trailing at a loss close to 50% in the last 12 months.

The company's share price is travelling within the lower end of its 52-week range of $1.12 to $2.98.

4DMedical has a market capitalisation of roughly $263 million, with more than 207 million shares outstanding.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Healthcare Shares

Male doctor in a lab coat working at laptop looking serious.
Healthcare Shares

This bombshell for ASX healthcare shares could hit 6 million Australians

This could have a large impact.

Read more »

Two scientists in a Rhythm Biosciences lab cheer while looking at results on a computer.
Healthcare Shares

2 ASX healthcare shares having a stellar run today

The ASX healthcare sector is down today but these two stocks are bucking the trend.

Read more »

A company manager presents the ASX company earnings report to shareholders at an AGM.
Healthcare Shares

Why this $13 billion ASX 200 healthcare stock is surging today

A change in sentiment for the healthcare player.

Read more »

Shot of a scientist using a computer while conducting research in a laboratory.
Healthcare Shares

This ASX 200 stock hit a 52-week low and a top broker thinks it can rebound

Patient investors may see this stock make a pleasing recovery.

Read more »

A couple smile as they look at a pregnancy test.
Healthcare Shares

Why this sold-off ASX healthcare share could be an exciting dividend buy

This could be a healthy stock for dividends.

Read more »

a smiling woman sits at her computer at home with a coffee alongside her, as if pleased with her investments.
Healthcare Shares

Is CSL the best ASX 100 share to buy now?

Bell Potter has good things to say about this blue chip star.

Read more »

Scientists in a laboratory look at a computer screen with anticipation on their faces representing a potential change in the performance of ASX biotech shares in FY23
Healthcare Shares

Down 10% in a month, are CSL shares feeling the sting of a potential disruption?

Brokers are still bullish.

Read more »

One girl leapfrogs over her friend's back.
Healthcare Shares

Doubled in a year! Does this booming ASX share have another 24% upside?

Let's take a look.

Read more »