4DMedical has landed a significant commercial contract with Intermountain Health to deploy its FDA-cleared Pulmonary Hypertension Analysis (PHA™) product, marking a key milestone in its U.S. expansion through a strategic Microsoft-backed partnership.
- Contract won with Intermountain Health, a leading U.S. health system spanning 33 hospitals
- Deployment of FDA-cleared Pulmonary Hypertension Analysis (PHA™) AI algorithm
- Sale facilitated via strategic distribution partnership with Microsoft-owned Nuance Communications
- Initial fixed payment with potential for substantial revenue growth tied to scan volumes
- Upcoming FDA submission for CT:VQ™ product expected to further boost growth
A Strategic Win in U.S. Healthcare
4DMedical Limited (ASX:4DX), an innovator in respiratory imaging technology, has announced a commercial contract with Intermountain Health, a prominent U.S. health system headquartered in Utah. This agreement marks the first major deployment of 4DMedical’s recently FDA-cleared Pulmonary Hypertension Analysis (PHA™) product within a large integrated health network, signaling a significant step forward in the company’s U.S. commercial expansion.
Intermountain Health operates 33 hospitals and nearly 4,000 physicians across multiple states including Utah, Idaho, Nevada, Colorado, and Montana. Renowned for its leadership in value-based care and early adoption of advanced medical technologies, Intermountain provides an ideal platform for 4DMedical’s AI-driven PHA™ algorithm to demonstrate clinical impact.
Innovating Pulmonary Care with AI
The PHA™ product leverages artificial intelligence to assist Pulmonary Embolism Response Teams (PERTs) in acute care settings by rapidly assessing pulmonary hypertension secondary to pulmonary embolism. It automates critical measurements such as right ventricle and main pulmonary artery diameters, delivering clinically relevant ratios that help identify pulmonary hypertension caused by PE-related thrombus. This capability promises to enhance diagnostic speed and accuracy, potentially improving patient outcomes in time-sensitive scenarios.
Integration into existing radiology workflows is streamlined through Nuance Communications’ PowerScribe platform, a widely used clinical documentation and diagnostic imaging solution. This seamless integration is a key commercial advantage, enabling radiologists to adopt the technology without disrupting established processes.
Leveraging a Microsoft-Backed Distribution Partnership
The contract was secured through 4DMedical’s strategic distribution partnership with Nuance Communications, a Microsoft-owned company. Nuance’s extensive network and AI-driven healthcare solutions provide 4DMedical with a powerful channel to penetrate the U.S. market. Intermountain Health itself is designated as one of Microsoft’s Innovation Sites, underscoring the collaborative synergy between these entities.
While the initial year’s payment from Intermountain to Nuance is fixed and based on a low volume of scans, future payments are expected to scale with increased usage across Intermountain’s extensive hospital network. This structure offers 4DMedical a meaningful revenue growth trajectory as adoption expands.
Growth Prospects and Pipeline Developments
4DMedical’s Managing Director and CEO, Andreas Fouras, highlighted the strategic importance of this contract, noting that it establishes the company within a major health system and sets the stage for expanding revenue through increased product usage and portfolio growth. He also pointed to ongoing growth momentum driven by rising scan volumes and the maturing partnership with Philips.
Looking ahead, 4DMedical is preparing for the FDA submission of its CT:VQ™ product for 510(k) clearance, anticipated later this calendar year. This next-generation offering could further enhance the company’s market position and revenue potential in respiratory imaging.
Overall, this contract win not only validates 4DMedical’s innovative AI technology but also underscores the commercial benefits of its strategic alliances with industry leaders like Microsoft and Philips. It positions the company well to capitalize on the growing demand for advanced pulmonary diagnostic tools in the U.S. healthcare market.
Bottom Line?
4DMedical’s foothold in a major U.S. health system signals promising revenue growth ahead as AI-driven pulmonary diagnostics gain traction.
Questions in the middle?
- How quickly will scan volumes ramp up across Intermountain Health’s network to drive revenue growth?
- What are the timelines and market expectations for the FDA clearance and launch of CT:VQ™?
- Could 4DMedical’s partnership with Philips unlock additional commercial opportunities beyond pulmonary hypertension?