Australia’s 4DMedical Secures Major US Imaging Agreement with SimonMed
Synopsis
The ASX 200 climbed more than 1% on Friday as investors returned to mining and gold stocks following a sharp sell-off earlier in the week. BHP, Northern Star Resources, Evolution Mining and Newmont helped drive the rebound after Wall Street reached fresh record highs overnight and oil prices eased. Investor sentiment improved as concerns around US-Iran tensions softened slightly, while property and banking stocks also moved higher during the session. The market recovery partially offset Thursday’s decline triggered by rising crude oil prices and geopolitical uncertainty.
Australia’s 4DMedical has reached a three-year commercial agreement with US imaging provider SimonMed to immediately roll out its lung imaging technology at more than 170 outpatient centres.
Key Highlights
- 4DMedical announces a commercial agreement with SimonMed Imaging.
- Allows for the immediate roll-out of CT:VQ and Lung Density Analysis technology
- SimonMed is running over 170 imaging centres based in 10 US states
- Deal is priced on a per-scan basis for a three-year term
- The technology utilizes our existing CT scanners without any significant hardware upgrades.
- This partnership support US-based data collection for future reimbursement
Australian-based imaging company has entered the US outpatient market
4DMedical has successfully entered into the US outpatient imaging market with an initial commercial agreement tied to CT:VQ lung imaging technology and SimonMed Imaging, one of the largest physician-led imaging providers in the United States. The second agreement provides for the clinical deployment of CT:VQ and Lung Density Analysis (LDA) across SimonMed's network of more than 170 imaging centres in 10 states, supported by a radiologist group of over 300 physicians.
This is a three-year contract, and has a per-scan pricing arrangement rather than following the approach of many software sales contracts by which 4DMedical would realize revenue from an upfront sale of the technology.
Why the technology works, and what makes this deal matter
CT:VQ is a unique computational lung imaging platform that maps airflow and alveolar blood flow using archived CT scans to facilitate pulmonary assessment in real-life patient clinical practice. With this technology you are given support in diagnosing and planning treatment for pulmonary embolism and other lung diseases.
One major benefit is that it can all be run from pre-existing CT imaging infrastructure, which means healthcare providers are not required to invest heavily in new hardware. It may help to drive this adoption faster through larger imaging networks such as SimonMed.
Deal lays the groundwork for expansion plans in the US
Outside of clinical deployment, 4DMedical said the partnership will also support reimbursement evidence and real-world usage data generated across the SimonMed network. That could help to support future payment pathways and propel wider commercial adoption within the US healthcare system.
4DMedical also expanded the breadth of its reach beyond hospitals and academic medical centres via the agreement with one of the largest community-based imaging networks in the US (United States), although it stated that it does not expect any immediate material effect on income from this deal.
FAQs
- Who is SimonMed Imaging?
SimonMed has over 170 centres in US, it is one of America's largest physician led imaging providers
- What technology will be deployed?
4DMedical is revolutionising lung scanning with CT:VQ and Lung Density Analysis (LDA) lung imaging technologies.
- How long is the agreement?
The commercial deal lasts for three years.
- How does CT:VQ work?
It employs common CT scans during standard of care practice to evaluate airflow and blood flow in the lungs using a software-based approach.
- Does the deal provide immediate revenue?
This agreement will not be immediately financially recognizable, however per-scan usage will also generate revenue.
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