Here's why the 4DMedical (ASX:4DX) share price is gaining today

US COVID-19 vaccine uptake and multiple clinical trials have sent the 4DMedical share price upwards.

| More on:
A medical specialist holding a chest an xray or scan and giving a thumbs up, indicating good results for asx healthcare share price

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 soaring today after the company released its latest quarterly activity and cash flow report.

The medical technology company announced COVID-19 vaccines have allowed it to increase its commercial activities over the quarter ended 30 June 2021.

Right now, the 4DMedical share price is $1.44. That's 5.49% higher than it was at Friday's close.

Let's take a closer look at the quarter that's been for 4DMedical.

What's driving the 4DMedical share price higher?

The 4DMedical share price is gaining on news of a successful fourth quarter.

The company has surpassed numerous clinical milestones. Additionally, the US COVID-19 vaccination rollout has given the company more access to hospitals and medical institutions.

Therefore, it believes its sales and marketing events will ramp up over the coming months.

Financial update

Over the June quarter, 4DMedical received $7.1 million in government grants and tax incentives. It also received a $600,000 customer receipts.

4DMedical spent $8.3 million on research and development, staffing, administration, and general operating. Its net operating cash outflows were $585,000.

At the end of the quarter just been, 4DMedical had $80.9 million of cash in the bank.

Clinical trails

The 4DMedical share price is likely higher due to productive clinical trials.

4DMedical now has 8 clinical trials approved by the US's Institutional Review Board (IRB).

Over the quarter, participants for 4DMedical's XV LVAS clinical trial began to be recruited.

The trial aims to find if XV LVAS can help treat patients with chronic obstructive pulmonary disease (COPD).

4DMedical says COPD is the third highest cause of death in the world and a "multi-billion dollar opportunity for 4DMedical's non-invasive, low dose technology".

4DMedical also entered a partnership to place XV LVAS at 8 US clinical sites.

There, between 75 and 100 late-stage COPD patients undergoing endobronchial valve procedures will be evaluated.

Finally, 4DMedical began the first clinical trial of its contrast-free Ventilation-Perfusion product.

The trial will be conducted in partnership with the University of Miami with the goal of speeding up the development of breakthrough lung technologies.

The company has also made headway with XV LVAS's pilot programs. They're reportedly going well and could evolve into future commercial relationships.

Other news

Its financial and clinical performance hasn't been all that's driven the 4DMedical share price lately.

Over the quarter, 4DMedical received a US$600,000 order from the University of Michigan.

The university bought one of 4DMedical's Permetium preclinical scanners and associated XV Technology.

Finally, 4DMedical subsidiary Australian Lung Health Initiative received $28.9 million of funding from the Australian federal government's Medical Research Future Fund.

The finds will go towards developing the XVD Scanner which analyses lung function.

Additionally, 4DMedical completed a $40 million capital raise and a $6 million share purchase plan to assist in the funding of this development.

4DMedical share price snapshot

Despite today's good news, it's still a bad year for the 4DMedical share price.

4DMedical's shares have dropped more than 40% year to date. They are also trading for 9% less than they were this time last year.

The company has a market capitalisation of around $401 million, with approximately 294 million shares outstanding.

Motley Fool contributor Brooke Cooper 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

CSL shares are in the red for 2024. Are they a buy?

Meanwhile, the broader market has extended to new highs this year.

Read more »

A smiling businessman in the city looks at his phone and punches the air in celebration of good news.
Share Market News

Guess which ASX 300 stock is jumping 11% on big news

Big news is giving this stock an even bigger lift on Tuesday. What's happening?

Read more »

Two lab workers fist pump each other.
Healthcare Shares

Guess which ASX 200 healthcare stock is starting the week with a bang on big news!

What is getting investors excited today? Let's find out.

Read more »

Doctor doing a telemedicine using laptop at a medical clinic
Healthcare Shares

3 small-cap ASX healthcare shares 'with strong prospects'

Fund manager IML discusses why these 3 ASX healthcare shares are likely to rise in value.

Read more »

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

2 All Ords ASX healthcare shares making BIG moves on quarterly updates

These two ASX healthcare companies are seeing heavy trading on Thursday.

Read more »

A woman reclines in a comfortable chair while she donates blood holding a pumping toy in one hand and giving the thumbs up in the other as she is attached to a medical machine to collect her blood donation.
Healthcare Shares

'Trading at a discount': Why now is the time to buy CSL shares

This investing expert says CSL shares now represent an appealing buying opportunity.

Read more »

woman testing substance in laboratory dish, csl share price
Healthcare Shares

Here's what could impact CSL shares from the biotech's AGM

The biotech giant's leadership had plenty to say.

Read more »

Man with a sleep apnoea mask on whilst sleeping.
Healthcare Shares

Why this fundie is backing ResMed shares in FY25

There's plenty more upside, this fund says.

Read more »