4DMedical Ltd (ASX: 4DX) shares are catching the eye on Wednesday.
In morning trade, the ASX healthcare share was up as much as 20% to $1.10.
Its shares have since pulled back a touch but remain up 13% to $1.04.
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Why is this ASX healthcare stock rocketing?
Investors have been scrambling to buy the company's shares this morning after it announced a memorandum of understanding with healthcare giant, Philips N.V. (NYSE: PHG).
According to the release, the two parties will look to establish a strategic collaboration to expand federal and commercial sales opportunities for XV Technology in North America.
4DMedical's flagship patented XV Technology enables physicians to understand regional airflow in the lungs and identify respiratory deficiencies earlier and with greater sensitivity as they breathe.
The ASX healthcare stock notes that the signing of this memorandum of understanding represents a major step forward in its commercialisation strategy, particularly within the U.S. Veterans Health Administration (VA).
This is because Philips has a long-established and significant existing partnership with both the VA and the Department of Defense (DoD). This includes a 45-year relationship, deploying 35% of the critical care information systems across the VA. It also has Philips imaging solutions in 50% of VA hospitals and Veterans Integrated Service Networks (VISNs).
Management believes that accessing this team of industry experts, with "unparalleled relationships" in global healthcare, provides an "unprecedented opportunity" to accelerate its go-to-market activities.
The ASX healthcare stock's founder and CEO, Andreas Fouras, said:
To partner with a healthcare powerhouse such as Philips is a phenomenal opportunity for 4D to accelerate our mission. The depth of commitment to Veterans by the team at Philips North America has been palpable throughout our 6-month long discussions. I continue to be impressed by their leadership in this space, and I am convinced that a partnership with Philips will dramatically accelerate the scaling of our offering within the VA. I am incredibly excited by the reach this will give our technology, and importantly, the impact this will have for millions of Veterans and their caregivers.
