Shares in 4DMedical Ltd (ASX: 4DX) are back in the spotlight after the company released an update to the market.
At the time of writing, the 4DMedical share price is up 14.25% to $4.49. This adds to what has already been a strong run for the healthcare stock over the past year.
So, what did the company announce, and why are investors buying?
A familiar face steps into the CFO role
Before market open, 4DMedical announced that Julian Sutton has been appointed as its new Chief Financial Officer and Executive Director, effective immediately.
Sutton has been involved with 4DMedical since 2017. He has previously served as a Non-Executive Director and was also an early investor in the company. During that time, he has worked closely with management on strategy, capital raising, governance, and investor relations.
The board stated that the appointment reflects the company's shift from developing its technology to focusing more on selling it and expanding the business. Sutton will now take on a more hands-on role as the company expands globally.
Why this matters right now
This change comes at an important time for 4DMedical.
The company's main lung imaging product, CT:VQ, has now received approval from the US Food and Drug Administration (FDA). It is already being used at leading medical centres across the United States.
4DMedical also has a global distribution deal with Philips, which gives it access to a large number of hospitals around the world.
With approvals secured and sales underway, the focus is now on getting more hospitals using the product and growing revenue.
Management said Sutton's experience and long history with the company make him well-suited to help guide this next stage.
What did management say?
Founder and CEO Andreas Fouras said Sutton has been a trusted adviser and has played an important role in the company's growth so far.
Fouras said that as demand for CT:VQ continues to grow, strengthening the leadership team was the right step to support global expansion.
Sutton said 4DMedical is entering a key phase, supported by FDA-approved technology, strong partnerships, and a clear path toward long-term growth.
Foolish Takeaway
Investors appear to see it as a sign that 4DMedical is preparing for long-term commercial growth. Combined with recent share price gains and increasing use of its technology in the US, today's update adds another positive signal for investors.
4DMedical remains a high-risk, high-reward healthcare stock. But for investors who believe in the technology and management's ability to deliver, this announcement is another step in the right direction.
