The 4DMedical Ltd (ASX: 4DX) share price has spent much of this year falling from grace after a stellar end to 2020.
After the company completed its initial public offering (IPO) in August 2020, its shares grew a whopping 71% to reach their highest ever closing price of $2.72 by mid-October.
After that, 4DMedical shares were incredibly volatile until the start of the new year, when their mostly downward spiral began.
Over the course of 2021, the 4DMedical share price has fallen by more than 38%.
So, what's been happening with the medical imaging company? Let's take a look.
What is 4DMedical?
4DMedical is a software company that specialises in software for medical purposes.
Its crown jewel is its four-dimensional lung imaging software. The software integrates with existing x-ray equipment to convert traditional x-rays into four-dimensional scans.
The software allows 4DMedical to deploy a suite of respiratory diagnostic products across its network of clinics and hospitals.
It's also developing the world's first lung function scanner which will allow for safe, easy and fast lung analysis for both adults and children.
What drove 4DMedical's growth?
The company gained the attention of ASX investors in the final months of 2020. Its share price went from $1.59 on its first day listed, to $2.43 by the end of the year.
4DMedical shares really started to grow exponentially after the company was involved in the Goldman Sachs Healthcare Forum on 8 October.
Goldman Sachs pointed to a number of positives in the company's business model. It said that current diagnostics are outdated in the lung-health sector, which has a US$31 billion per annum global market. The 4DMedical share price jumped almost 43% between 7 and 9 October alone.
4DMedical's software had also received TGA approval late in September. Furthermore, on 18 December the company's software completed its first commercial scan in Australia.
4DMedical shares on the slide
Since the beginning of 2021, the 4DMedical share price has been generally trending downwards, despite what appears to have been a raft of good news.
In late January, the company announced its lung diagnostic software was to commence its first clinical pilot in the US.
The following day, 4DMedical shared its quarterly activities report for the second quarter of the 2021 financial year, which was largely positive.
4DMedical released its maiden half-year results in February. While its results showed a simultaneous increase in losses and a decrease in profits, the company's management stated this was part of its plan.
In March, 4DMedical received a government grant and began a capital raising program. The grant was from the federal government and worth $28.9 million. 4DMedical also shared it would complete a $40 million capital raising project. The company said the cash would be used to develop the world's first lung function scanners, providing safe, easy and rapid lung analysis for adults and children.
A few weeks later, the company completed another capital raising, this time a share purchase plan worth $6 million.
Despite releasing a stable third-quarter report in late April, the 4DMedical share price can now be found resting at $1.49. Only time will tell if it will return to its former glory.
