Why the Impedimed (ASX:IPD) share price shot higher this morning

The Impedimed share price is shooting higher today, up 5% in morning trade. We take a look at what's moving the shares.

Bernd Struben

Author bio Bernd Struben earned his BA in economics from the University of Michigan in 1991, with post-graduate studies in environmental economics at the University of Connecticut. Over the years he’s written about and analysed the tourism industry in the Caribbean; Europe’s commercial real estate markets; and, since moving to Australia in 2010, global and Aussie share markets. Bernd studies geopolitical and macroeconomic trends, alongside sector and company specific data, to gauge what he believes could be tomorrow's best investments. In his free time, you might find Bernd at the beach with his family or working on his next science fiction novel. Areas of expertise Australian and global share markets Macroeconomic and geopolitical trends Real estate Education Economics, University of Michigan Favorite investment quote "The four most dangerous words in investing are: 'This time it's different." — Sir John Templeton

Published March 4, 2021 12:56 pm AEDT

The Impedimed Ltd (ASX: IPD) share price shot higher this morning, up 5% in morning trade.

This came after the ASX medical technology company reported a significant uptick in the number of tests conducted with one of its leading medical devices.

What testing results did Impedimed report?

The Impedimed share price is surging after the company reported its customers had conducted more than 28,000 patient tests with its SOZO device in the second quarter of the 2021 financial year (Q2 FY21). That brings the total number of patient tests since SOZO's commercial launch in October 2017 to more than 200,000.

The company noted that the pace of testing is picking up speed, with 100,000 tests in the past 13 months compared to the 100,000 tests in the first 32 months. It forecasts the SOZO testing rate will continue to increase.

SOZO is an FDA cleared "non-invasive bioimpedance spectroscopy (BIS) device". According to the company, the device provides a "precise snapshot of fluid status and tissue composition in less than 30 seconds". Those results can then be posted directly online, enabling the information to be shared amongst medical professionals.

Management notes

Commenting on the testing numbers, Impedimed CEO Richard Carreon said:

This is a significant milestone for our company, but more importantly for the patients whose lives have been dramatically impacted by the reduction in lymphoedema rates from SOZO testing.

For the company, we are building a large dataset which will be very valuable in providing new insights into the course and care of a large number of chronic disease states.

Carreon added that COVID-19 had seen testing numbers fall in US cancer centres as the pandemic spread in late December and into January. With testing numbers having since improved, he expects testing numbers to pick up in March and that this trend "importantly, points to a strong recovery in patient testing heading into the fourth quarter".

Impedimed share price snapshot

Over the past full year, the Impedimed shares have gained 44%. That compares to a 10% gain on the All Ordinaries Index (ASX: XAO).

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