4DMedical (ASX:4DX) posts March quarterly update

• Medical technology company 4DMedical (4DX) has released its quarterly update for the March quarter
• The company is focussed on developing and, eventually commercialising, its XDV Scanner which provides a rapid lung analysis for adults and children
• Pleasingly, its joint venture company, Australian Lung Health Initiative (ALHI) was awarded $28.9 million in government funding to progress the technology
• 4DMedical also raised $46 million through a placement and share purchase plan to boost the funds available to develop the XDV Scanner
• The company aims to deploy the first units in Australian hospitals early next year
• At the end of the quarter, 4DMedical had $76.5 million in cash
• Company shares are down a slight 0.62 per cent and trading at $1.61

4DMedical (4DX) has released a quarterly update for the March 2021 quarter.

4DMedical is a medical technology focused on commercialising its patented respiratory imaging platform, the XDV Scanner. This world-first dedicated lung function scanner provides a rapid lung analysis for adults and children.

Commercialisation

At the start of the quarter, the company announced its first clinical trial for the XV Lung Ventilation Analysis Software (XV LVAS). The trial, conducted in California, U.S., was initially impacted by COVID-19. But once vaccines began to roll out across the U.S., clinical programs could recommence.

Now, the company has three trials in progress which will help to validate the accuracy of the XV LVAS.

4DMedical also has multiple clinical trials in the pipeline that will resume in the coming months once hospitals return to business as usual.

Govt. funding

In March, the Australian Government Department of Health awarded Australian Lung Health Initiative (ALHI) $28.9 million in funding from its Medical Research Future Fund (MRFF) Frontier Health and Medical Research initiative.

ALHI is a joint venture held between 4DMedical, the University of Adelaide and South Australian Health and Medical Research Institute. ALHI is using the money to develop the XDV Scanner.

XVD Scanners will be integrated with 4DMedical’s proprietary XV Technology which has advantages over existing diagnostics and imaging tools.

The company expects first units of the XVD Scanners will be deployed in Australian hospitals early next year. Then, the first generation scanners are expected to be commercialised the following year.

$46 million capital raise

Soon after the MRFF funding was announced, 4DMedical launched a $40 million placement to develop and commercialise the XVD Scanner.

Additionally, the healthcare stock completed a $6 million share purchase plan to boost the funds available to progress the XVD Scanner.

The company spent about $4.4 million on operating activities — most of which was allocated to staff and admin, and research and development costs.

4DMedical ended the quarter with $76.5 million in cash.

Company shares are down a slight 0.62 per cent and trading at $1.61 at 1:06 pm AEST.