This ASX medtech stock is roaring 67% higher today on a US approval

Shareholders of this medtech stock are smiling on Monday.

| More on:
a doctor in white coat and stethoscope stands in front of a building holding an electronic device in his hands.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The 4DMedical Ltd (ASX: 4DX) share price is having a stunning start to the week.

In afternoon trade, the ASX medical technology stock is up 67% to 77 cents.

Why is this ASX stock rocketing?

Investors have been scrambling to buy the company's shares today after it was given a major boost in the United States.

According to the release, 4DMedical's XV Lung Ventilation Analysis Software (XV LVAS) procedure has been included on the U.S. Centers for Medicare & Medicaid Services (CMS) annual, final payment rates for hospital outpatient-based services, effective 1 January 2024.

This means from next year XV LVAS scans conducted in a U.S. hospital outpatient facility for Medicare patients can be billed to CMS to the rate of US$299 per scan.

What is XV LVAS?

XV LVAS is the first modality to dynamically quantify ventilation throughout the lungs, and its computed tomography-enabled counterpart software, CT LVAS.

It leverages the company's flagship patented XV Technology, which enables physicians to understand regional airflow in the lungs and identify respiratory deficiencies earlier and with greater sensitivity as they breathe.

The ASX stock's CEO and founder, Andreas Fouras, was very pleased with the news. He said:

I am very excited by this progress in the commercialisation of our technology, and the positive impact this reimbursement decision will have upon doctors and their patients. Achieving a Medicare reimbursement of US$299 per scan is a major milestone in our progress to secure reimbursement across the entire U.S. healthcare system and meaningfully removes a barrier to broader adoption across the large network of facilities providing healthcare to the 65 million Americans enrolled in Medicare. This ruling will lead to accelerated uptake of XV LVAS, which in turn will support our pursuit of a Category I CPT code.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. 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 Scott Phillips.

More on Healthcare Shares

Scientist with headache, stress and fatigue with woman, overworked with overtime for science breakthrough. Medical research, scientific innovation and senior female, burnout and migraine in lab.
Healthcare Shares

Why is the Mesoblast share price in a trading halt?

Is Mesoblast raising funds again? Let's find out.

Read more »

A woman reclines in a comfortable chair while she donates blood holding a pumping toy in one hand and giving the thumbs up in the other as she is attached to a medical machine to collect her blood donation.
Healthcare Shares

The CSL share price return tripled the ASX 200 in November

November saw a very healthy return for CSL shares.

Read more »

A male doctor wearing a white doctor's coat shrugs and holds his hands up to indicate the unimpressive CSL share price as a result of OOVID-19
Share Market News

Here's why you might have just bought Healius shares

Two of the most popular super funds just loaded up on this healthcare stock.

Read more »

Doctor doing a telemedicine using laptop at a medical clinic
Healthcare Shares

Here's why this ASX 200 healthcare stock is roaring 13% higher on Wednesday

This healthcare company is outperforming every other stock within the ASX 200 today.

Read more »

A young woman sits at her desk in deep contemplation with her hand to her chin while seriously considering information she is reading on her laptop

Could CSL stock be a millionaire-maker at $261

Does the exceptional biotech company still harness the power to make an investment today worth a million in the future?

Read more »

Two happy scientists analysing test results in a lab
Healthcare Shares

Why are Mesoblast shares charging 5% higher today?

This beaten down biotech is having a strong session. But why?

Read more »

Cropped shot of an attractive young female scientist working on her computer in the laboratory.
Healthcare Shares

Healius share price rallies amid corporate reset

An outgoing chair and a revitalised balance sheet. Healius is undergoing a makeover.

Read more »

Cropped shot of an attractive young female scientist working on her computer in the laboratory.
Healthcare Shares

Imugene share price jumps 32% on FDA news

Here's why this biotech is having a strong start to the session.

Read more »