4DMedical (ASX:4DX) share price wobbles on quarterly report

The 4DMedical share price is falling today as the company released its quarterly report. We take a closer look.

The 4DMedical Ltd (ASX: 4DX) share price is wobbling today after the company released its latest quarterly report. Shares in the company are currently trading 0.31% lower at a price of $1.62.

4DMedical is a medical imaging company that is focusing on commercialising its respiratory imaging program.

Male wearing face mask reviewing medical scans on light box.

Image source: Getty Images

Route to commercialisation

During the quarter ended 31 March 2021, 4DMedical pressed ahead with a number of initiatives, primarily in the effort to get its XVD scanner — the world's first dedicated lung scanner — closer to commercial use.

The company was granted $28.9 million in funding by the Medical Research Future Fund to be used towards development of the XVD Scanner.

4DMedical confirmed it will receive 100% of the revenue generated from the scanner sales and associated service revenue. The scanners are expected to be deployed in early 2022, with commercialisation coming one year later.

The company continues to press ahead securing clinical pilots and completing clinical trials with healthcare institutions. In January, 4DMedical announced the first clinical pilot for its lung ventilation analysis software would be conducted at St. Joseph Hospital. Located in Orange County, California.

In the quarter, 4DMedical also secured pre-contracts with the US Department of Defense and Veterans Affairs. This access will allow the department's healthcare facilities first access to use the company's technology. 4DMedical has negotiated a fixed price for the offering without requiring separate reimbursement, which it states will help streamlining commercial agreements in the future.

Clinical trials commence

In further good news for the company during the quarter, it was able to recommence clinical trials in the US, with the pandemic being brought under control by vaccines. As such, 4DMedical has 3 trials active.

The trials are all being conducted in separate institutions to ensure the validity of results.

What next for 4DMedical?

Following the company's successful capital raising it now has $76.5 million in the bank as of March 2021. Net outflows for the quarter were $4.5 million, relating mainly to staff costs, R&D and operating costs.

Moreover, according to the release, a strong pipeline of clinical trials awaiting hospital readiness are expected to resume in the coming months.

On current prices, the 4DMedical share price is down more than 30% so far this year, but up 2.52% on this time last year. 

Motley Fool contributor Daniel Ewing has shares in 4DMedical Ltd. 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 Bruce Jackson.

More on Healthcare Shares

Happy healthcare workers in a lab.
Healthcare Shares

Mesoblast reports Ryoncil revenue surge and improved cash spend

Mesoblast reported a 44% jump in Ryoncil revenue and a substantial improvement in operating cash spend.

Read more »

A female scientist in a laboratory setting using a tablet to review data, with a male scientist working in the background.
Healthcare Shares

Down 44%: Will you regret not buying Pro Medicus shares?

The shares have fallen hard, but the business itself continues to grow at an impressive rate.

Read more »

Two colleagues looking at a graph and comparing share prices.
Healthcare Shares

CSL shares: Buy, hold, or sell?

The shares have recovered sharply, so I wanted to see whether the valuation still stacks up.

Read more »

Two colleagues looking at a graph and comparing share prices.
Healthcare Shares

Telix vs Clinuvel Pharmaceuticals: Which ASX healthcare share deserves your next $1,000 of investment capital?

We compare Telix and Clinuvel Pharmaceuticals on valuation, dividends, and momentum—which ASX healthcare stock looks more compelling now?

Read more »

Numerous Australian dollar notes laid out.
Healthcare Shares

I'd buy 6,462 shares of this ASX stock to aim for $200 a month of passive income

This business can provide very healthy dividends.

Read more »

A doctor appears shocked as he looks through binoculars on a blue background.
Healthcare Shares

UBS thinks Telix Pharmaceuticals shares will go how high?

Good news out of the US has led to a share price target upgrade.

Read more »

Scientist taking down notes from a tablet, with two other scientists working in the background.
Healthcare Shares

Healius vs Australian Clinical Labs: Which ASX pathology share wins?

Healius and Australian Clinical Labs are both top pathology providers, but one stands out for profits, dividends, and recent momentum.

Read more »

Doctor looks at a graph on a tablet.
Healthcare Shares

Ramsay Health Care vs Sonic Healthcare: Which healthcare stock is better value?

Which offers better value — Ramsay Health Care or Sonic Healthcare? I compare their fundamentals, dividends, momentum and reveal my…

Read more »