The 4DMedical Ltd (ASX: 4DX) share price is surging today, up 39.6% after posting gains of as much as 95% in early morning trade.
4DMedical shares closed yesterday at 36 cents and are currently trading for 51 cents.
So what's driving ASX investor interest in the respiratory imaging technology company?
Nationwide contract inked
The 4DMedical share price is rocketing after the company reported it has signed a nationwide contract with I-MED Radiology Network. I-MED has more than 250 clinics across Australia.
The new three-year agreement formalises an existing commercial arrangement between the two companies. 4DMedical is now cleared to send its lung imaging technology to other selected clinics across I-MED's network.
Atop the agreement, the company said its agreed to establish a Lung Centre of Excellence together with I-MED. Employing its ling imaging technology, 4DMedical said the centre will "enable world-class research and development activities to advance diagnostic imaging throughout Australia".
The 4DMedical share price could also be getting a lift from the company's report that the collaboration with I-MED could streamline the adoption processes of its diagnostic imaging technology without requiring extensive pilot programs.
Commenting on the development
4DMedical CEO, Andreas Fouras said:
Expansion of our proven capability nationwide means many more people will be able to access the latest technology in respiratory imaging. Beyond putting our innovative technology in the reach of more people, this deal represents a significant opportunity to drive revenue for the company. Additionally, this agreement creates a framework for the rapid commercialisation of future 4DMedical products.
I-MED CEO Shrey Viranna added, "Activating this arrangement augments I-MED's world-class diagnostic imaging offering through access to 4DMedical's unique functional lung imaging technology."
4DMedical share price snapshot
Despite today's big lift, the 4DMedical share price remains down 59% in 2022. By comparison, the All Ordinaries Index (ASX: XAO) is down 13% year-to-date.
