Why is the 4DMedical share price rocketing 20% on Wednesday?

Investors have pivoted the share from sustained lows.

| More on:
A woman on a green background points a finger at graphic images of molecules, a rocket, light bulbs and scientific symbols as she smiles.

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

Key points

  • 4DMedical provided a significant update regarding its XV Technology
  • The imaging platform met its primary endpoint in another clinical trial
  • In the last 12 months, the 4DMedical share price is down more than 61%

The 4DMedical Ltd (ASX: 4DX) share price is trading 23% into the green on Wednesday following a company update.

Investors are rallying the share after it announced a "major success" in the 'burn pit' clinical trial. The trial is being conducted by Vanderbilt University Medical Centre, in Nashville in the United States.

What did 4DMedical announce?

Preliminary results indicate that 4DMedical's XV Technology can detect constrictive bronchiolitis in military veterans, where pulmonary function tests (PFTs) and CT scans have failed to do so.

The XV Technology is a medical imaging platform that uses image-processing methods taken from aerospace engineering to perform deeper respiratory analysis.

Curiously, the background for the trial stems from a pattern of "disabling" respiratory symptoms observed in US military personnel. The symptoms include shortness of breath and coughing, but are severe enough to significantly impact daily function.

It is understood that exposure to toxic chemical fumes when disposing of and burning hazardous/non-hazardous waste was a factor for the personnel during their time serving in the Middle East.

The U.S. military constructed burn pits near bases across the Middle East to dispose of hazardous
and non-hazardous waste.

A wide range of materials, including uniforms, chemicals, tyres, and even medical, animal and human waste, were burned in pits using jet fuel as an accelerant.

It is estimated that 3.5 million Veterans have been exposed to harmful toxins whilst deployed on operations since 2001.

The 'burn pit' trial looked at this symptomology and showed that XV Technology is accurate in identifying the constrictive bronchitis.

4DMedical also advised that it has a pre-agreed pricing structure with the Veteran Health Association (VHA). The agreement means the company can offer the procedure at US$171 per scan – without the need for reimbursement.

In the last 12 months, the 4DMedical share price is down more than 61%.

Motley Fool contributor Zach Bristow 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 Scott Phillips.

More on Share Gainers

Ten smiling business people wave to the camera after receiving some winning company news.
Share Gainers

Here are the top 10 ASX 200 shares today

ASX investors enjoyed a strong recovery day this Tuesday.

Read more »

A graphic showing a businessman running up a white upwards rising arrow symbolising the soaring Magellan share price today
Share Gainers

CBA shares hit another all-time high. Can they surpass $200 in 2025?

CBA shares have a tailwind pushing up their price that has nothing directly to do with the bank's business performance.

Read more »

a young woman raises her hands in joyful celebration as she sits at her computer in a home environment.
Share Gainers

Why Alliance Aviation, Cogstate, Collins Foods, and Findi shares are roaring higher today

These shares are having a good session on Tuesday. Let's find out why.

Read more »

Unsure man analysing data on laptop.
Share Gainers

Here are the top 10 ASX 200 shares today

ASX investors had a rough start to the week this Monday.

Read more »

Crude oil barrels rocketing.
ETFs

Why did the BetaShares Crude Oil ETF just spike 4%?

This ETF is attracting buyers in today's seller's market.

Read more »

Woman with an amazed expression has her hands and arms out with a laptop in front of her.
Share Gainers

Why BWP, Metcash, Resolute Mining, and SHAPE shares are pushing higher today

These shares are starting the week on a positive note. But why?

Read more »

Workers at the port joyfully jump high in the air with shipping containers in the background.
Industrials Shares

$10,000 invested in Austal shares a year ago is now worth…

Austal is an Australian shipbuilding company founded in 1988 that builds ships for the US Navy.

Read more »

Unsure man analysing data on laptop.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a disappointing end to a disappointing week for investors this Friday.

Read more »