The 4DMedical Ltd (ASX:4DX) share price is soaring higher today despite the broader All Ordinaries Index (ASX: XAO) tumbling lower. This, after the company announced it has started its first clinical trial for its XV Lung Ventilation Analysis Software (XV LVAS).
During early morning trade, the 4DMedical share price is up 6.6% to $2.41. In contrast, the All Ords is slightly down 0.37% to 7,096 points.
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What did 4DMedical announce?
The 4DMedical share price is on the move after the company reported its progressing with the commercialisation of XV LVAS.
4DMedical advised that its first XV LVAS clinical pilot program will be undertaken at St Joseph Hospital in Orange County, California. St Joseph Hospital is one of 51 hospitals owned by the third largest non-profit health system within the United States, Providence Health & Services.
According to this morning's release, XV LVAS will be used to assist in the screening for lung diseases. This includes diagnosing and monitoring patients with health problems such as asthma, emphysema, pulmonary fibrosis, lung cancer and COVID-19.
The respiratory imaging platform will be tested over the coming months by St Joseph Hospital medical professionals. If successful, it's anticipated that the company will roll-out XV LVAS as the standard practise for inpatient and outpatient settings.
XV software and its addressable market
4DMedical's proprietary XV LVAS technology converts X-ray images into a four-dimensional data package using mathematical models and algorithms. The platform then provides physicians with information about a patient's lung motion and air flow. This enables the detection and monitoring of various lung diseases, which can be managed or treated if possible.
4DMedical noted that the respiratory diagnosis industry is worth an estimated US$31 billion per annum world-wide. In the United States, the largest healthcare market, this represents an annual opportunity of US$13.7 billion.
Management commentary
4DMedical founder & CEO Andreas Fouras hailed the milestone, saying:
We are extremely pleased to announce the commencement of the clinical pilot in collaboration with St Joseph Hospital as it signifies the commencement of our commercialisation phase in the US. We believe that XV LVAS is a unique tool that can assist physicians in diagnosing and managing patients with various lung diseases, including COVID-19, as it provides physicians with a unique picture of how air moves in the lungs.
We have been extremely pleased with the feedback received from leading hospitals and clinics in the US, our priority market, and remain focused on continuing to progress the commercial rollout of XV LVAS.
About the 4DMedical share price
Since listing in August, the 4DMedical share price has gained more than 42% for investors in that time. The company's shares hit a low of $1.25 in the opening month, before accelerating higher to $2.98 in October.
Based on the current share price, 4DMedical commands a market capitalisation of around $400 million.
