What’s driving 42% rally in 4DMedical (ASX:4DX) share price?

Published on June 28, 2022 02:20 PM AEST

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What’s driving 42% rally in 4DMedical (ASX:4DX) share price? — Image source: © Goldy83 | Megapixl.com

Highlights

4DMedical (ASX:4DX) saw a strong market response on the back of a nationwide contract with I-MED Radiology Network.

4DX has also reached an agreement with I-MED to establish a Lung Centre of Excellence.

The three-year contract is driven by the successful rollout of 4DMedical's XV Technology™ across I-MED clinics.

4DMedical Limited (ASX:4DX) shares gained nearly 41.666% to AU$0.510 midday on 28 June 2022. The share price uptick was driven by the company update on a nationwide contract from I-MED Radiology Network (I-MED).

Additionally, the global medical technology company entered an agreement with I-MED to establish a Lung Centre of Excellence by utilising its lung imaging technology.

The developments will support world-class research and development activities for advancing diagnostic imaging across the country.

Source: company update

Overview of the nationwide contract

I-MED is the largest outsourced provider of radiology in Australia. Its more than 250 nationwide clinics caters to private and public hospitals with different diagnostic services.

The contract is driven by the successful rollout of 4DMedical's XV Technology™ across I-MED’s Australian clinics.

The agreement is for three years that formalises the existing commercial arrangement. It clears the path for delivering 4DMedical's lung imaging technology to other selected clinics across the network of I-MED.

4DX has now delivered XV Lung Ventilation Analysis Software (XV LVAS™) scans to patients with long COVID, asthma, COPD, and silicosis at each site.

As 4DMedical is moving forward through a rapidly developing product pipeline, the I-MED partnership might provide simplified adoption across the country without requiring large pilot programs.