4DMedical Faces Integration Costs but Eyes Breakthrough with CT:VQ™ and Philips Deal
4DMedical reports a remarkable 202% increase in Q2 FY2025 operating revenue, driven by rapid site expansion and key collaborations with leading healthcare providers and the U.S. Department of Defense.
- Operating revenue jumps 202% to $1.5 million in Q2 FY2025
- Global site count grows 24% to 301, with scan volume up 77% year-on-year
- FDA clearance of IQ-UIP™ expands product portfolio in lung disease diagnostics
- Strategic partnerships secured with UChicago Medicine, UCSD Health, and major radiology networks
- CT:VQ™ technology advances with clinical data, DoD contract, and $1.9 million CRC-P grant
Robust Revenue and Site Growth Signal Market Momentum
4DMedical Limited (ASX:4DX) has delivered a standout performance in Q2 FY2025, reporting operating revenue of $1.5 million, a 202% increase compared to the prior corresponding period. This surge is underpinned by a 24% rise in global operating sites to 301 and a 77% jump in scan volumes year-on-year, reflecting accelerating adoption of its respiratory imaging technologies.
The company’s core SaaS products, powered by its patented XV Technology®, grew 106% in Q2, with the average price per scan increasing 12% to $349 AUD. These metrics underscore a maturing commercial footprint and enhanced monetisation per procedure.
Strategic Partnerships Bolster U.S. and Australian Market Penetration
4DMedical’s commercial momentum is further evidenced by new agreements with prestigious institutions including UChicago Medicine and UCSD Health in the U.S., alongside major radiology providers Perth Radiology Clinics and Qscan in Australia. These partnerships not only validate the clinical utility of 4DMedical’s portfolio but also establish influential reference sites critical for broader market adoption.
Notably, UCSD Health expanded its contract to include SeleCT, a screening service that identifies candidates for endobronchial valve treatment, highlighting the technology’s integration into specialised clinical pathways.
FDA Clearances and Product Innovation Drive Competitive Edge
In January 2025, 4DMedical secured FDA clearance for IQ-UIP™, an AI-driven diagnostic tool for Usual Interstitial Pneumonia (UIP), a key marker for Interstitial Pulmonary Fibrosis (IPF). This clearance marks the company’s eighth product approved in the U.S., reinforcing its leadership in lung imaging analysis.
Meanwhile, CT:VQ™, a novel imaging technology poised to disrupt the $1 billion U.S. Nuclear VQ scan market, made significant strides. Clinical trial data presented at RSNA 2024 demonstrated its potential to replace traditional nuclear scans with a faster, safer, and more accessible alternative. The technology’s commercial prospects were bolstered by a contract win with the U.S. Department of Defense and a $1.9 million CRC-P grant to accelerate health economics and clinical evidence generation.
Philips Partnership Set to Amplify Sales Reach
The recently implemented reseller agreement with Philips is poised to turbocharge 4DMedical’s commercial efforts. Following a collaborative showcase at RSNA and ongoing joint sales presentations, Philips’ extensive healthcare network is expected to open new sales channels imminently, potentially scaling 4DMedical’s market penetration rapidly.
CEO Andreas Fouras highlighted the synergy, noting that the combination of organic growth and Philips’ sales force creates a powerful catalyst for the company’s next growth phase.
Financial Position and Outlook
Despite operating cash outflows of $5.1 million this quarter, partially due to integration costs from the Imbio acquisition, 4DMedical’s cash reserves remain healthy at $16 million. Grant funding of $7.7 million, including R&D tax incentives and MRFF grants, continues to support the company’s innovation pipeline.
While the Imbio earn-out hurdle for 2024 revenues was not met, delaying a $10 million share payment, the FDA clearance of IQ-UIP™ may trigger future earn-out payments, aligning incentives for continued product development.
Looking ahead, the imminent commercial launch of CT:VQ™ alongside the Philips partnership sets the stage for a potentially transformative year, with multiple growth levers converging.
Bottom Line?
4DMedical’s accelerating commercial traction and product innovation position it for a pivotal 2025, with Philips partnership and CT:VQ™ launch as key growth catalysts.
Questions in the middle?
- How quickly will Philips’ sales network translate into material revenue growth?
- What is the timeline for FDA clearance and commercial rollout of CT:VQ™ beyond the DoD pilot?
- How will 4DMedical navigate competitive pressures as lung imaging technologies evolve?