Guess which ASX medical share has exploded 275% in a month?

Two scientists in a Rhythm Biosciences lab cheer while looking at results on a computer.Two scientists in a Rhythm Biosciences lab cheer while looking at results on a computer.

The S&P/ASX 200 Health Care Index (ASX: XHJ) has climbed 3% in the last month, but this ASX medical share has soared far higher.

The 4DMedical Ltd (ASX: 4DX) share price has rocketed 278% since market close on 3 April from 30 cents to $1.14.

So why has this ASX medical share had such a stellar run lately?

What’s happening?

4DMedical shares have been lifting amid a raft of positive announcements from the company.

In early April, 4DMedical advised it had signed its “first US hospital Software as a Service (SaaS) contract”.

Under a five-year contract with the University of Miami, 4DMedical will provide XV technology to enable the processing of patient data. XV technology enables physicians to detect the level of airflow in the lungs. 

4DMedical described the deal as a “significant milestone” for the company’s commercialisation strategy in the US.

Then on 13 April, 4DMedical provided further details on this sales contract. Under its terms, a minimum of $1 million to $1.5 million in fees is guaranteed to be paid to the company over a five-year term.

Meanwhile, on 26 April, 4DMedical updated the market with a quarterly report. Receipts from customers grew 67% to $1.2 million in the third quarter. The company reported a cash balance at 31 March of $36.8 million.

The company advised it is continuing to meet with US congress members on Capitol Hill to outline the company’s XV Technology and its potential to deliver on PACT Act healthcare for veterans. The former US Secretary for Veterans Affairs, Dr David Shulkin, has recently joined 4DMedical in an advisory role.

Finally, on 1 May, 4DMedical advised it had conducted its first commercial scanning within Veterans Health Administration. This took place at the Harry S. Truman Memorial Veterans Hospital.

Commenting on the news, 4DMedical CEO and founder Andreas Fouras said:

A vision to enable better care for Veterans is core to 4DMedical’s mission and culture. I am delighted to share the success of the first commercial scan at Harry S. Truman Memorial Veterans Hospital, completed by our team working alongside VA [Veterans Affairs] medical professionals.

Share price snapshot

The 4DMedical share price has soared 68% in the last year and 170% in the year to date.

This ASX medical share has a market capitalisation of about $334.7 million based on the latest share price.

The post Guess which ASX medical share has exploded 275% in a month? appeared first on The Motley Fool Australia.

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More reading

Motley Fool contributor Monica O’Shea has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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