While we are seemingly on the back-stretch of the COVID-19 pandemic, increased medical awareness has changed how we diagnose respiratory diseases with medtech company 4DMedical (ASX: 4DX) leading the charge. Their proprietary FDA/TGA approved, patented respiratory imaging platform, XV Technology turns sequences of x-ray images into four-dimensional, quantitative data to improve and accelerate diagnostic accuracy.
And the tech couldn’t come at a better time.
The Company’s market potential is only amplified against the backdrop of the COVID-19 pandemic. Prior to the pandemic (in 2019) over USD$31 billion was spent on respiratory diagnostic tests worldwide. Forecast reports estimate the projected value of the global respiratory diagnostics market will reach USD$6.5 billion by 2024.
The release of the Company’s quarterly activity report proves that they are well on their way to cementing themselves as a key player in the market.
In March of this year the Australian Government Department of Health granted $28.9 million of funding from its Medical Research Future Fund to the Australian Lung Health Initiative (ALHI). ALHI is a joint venture between 4DMedical, The University of Adelaide and the South Australian Health and Medical Research Institute. The partnership was established to advance lung and respiratory healthcare through collaboration. The government funding will be used to further the development of the world’s first dedicated lung function scanner which incorporates 4DMedical’s proprietary technology. This move has opened up the Company to 100% of the revenue generated from XVD scanner sales, service revenue and software sales. The first scanners are expected to be placed in Australian hospitals in early 2022 with commercialisation beginning in 2023.
The R&D doesn’t stop there, with the Company adding to its pipeline of clinical trials. The first clinical pilot of their XV Technology was announced earlier this year and will be conducted at St. Joseph Hospital in Orange County, California, USA. St. Joseph is part of the Providence health care organisation which spans across 51 American hospitals and 1085 clinics. The technology will be utilised in a clinical setting to evaluate its diagnostic accuracy for a range of lung conditions including asthma, emphysema, pulmonary fibrosis, lung cancer and COVID-19.
4DMedical has also announced the securing of contracts with the US Department of Defense and Veterans Affairs to integrate use of their technology.
Although the Company reported net outflows of $4.5 million for the quarter ending 31 March 2021, they remain well funded with $76.5m in the bank following a successful $46m capital raise. In the coming months, 4D Medical is set to reduce their marketing expenses and filter their spend towards R&D, US sales and distribution and intellectual property.