Polarean Imaging raises US$10m to support XENOVIEW19 Jun 2024 22:27
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Polarean successfully raises US$10m with significant contributions from existing major investors NUKEM and Bracco who continue to support
POLX
's novel Xenon MRI technology using its proprietary contrast agent XENOVIEW.
POLX
's pulmonary imaging platform promises to revolutionise medical imaging with the ability to illuminate hidden diseases non-invasively. This can enable early intervention and significantly improve patient outcomes.
The fundraise will enable
POLX
to accelerate commercialisation of XENOVIEW, which is seeing increasing takeup in clinical and research settings. Current customers include University of Alabama at Birmingham Hospital, Cincinnati Children's Hospital Medical Center, and University of Missouri Health Care. Last month,
POLX
secured a key US patent for Xenon MRI imaging, expanding the utility of its technology in the diagnosis and monitoring of diseases of the pulmonary vasculature.
With the patent, Polarean's Xenon MRI platform can see expanded use in the US, following initial receipt of FDA approval in December 2022. To fully avail of the new patent,
POLX
is working to secure a gas exchange indication for XENOVIEW from the FDA, with an associated clinical trial expected soon. The additional cash runway afforded by the fundraise will accelerate this process and other associated R&D.
In total, the net proceeds from the fundraise and
POLX
's existing cash reserves should extend the company's cash runway into Q1 2026.
POLX
reiterated its near-term revenue guidance of c. US$2.5m in 2024. The company reported active discussions with more academic and medical institutions as XENOVIEW sales continue to gain momentum.
While markets may not be thrilled about the need to raise more capital, the fundraise should be seen as growing pains given the progress and milestones Polarean is expected to achieve this year. By end of 2024,
POLX
should have a total installed clinical base of 5-7 systems with sites performing 3-4 scans/week, enabling them to earn a positive ROI on XENOVIEW.
Furthermore, as mentioned revenues of US$2-3m are expected this year, compared to less than US$1m in 2023. If takeup continues its current trajectory, by end of 2025
POLX
's total installed clinical base should be 12-14 systems with scans performing 5-6 scans/week and revenues of US$5-6m. Profitability would then be expected by 2027 provided the FDA approves the gas exchange application for XENOVIEW, which is highly likely.
Based on existing deployments, industry interest, and today's announcement, there is good reason to believe in XENOVIEW's long-term success. Last year's approval of a new C-code from US Medicare, corresponding to a payment range of US$1,201 to US$1,300, was a major milestone. The new code, along with additional existing codes for XENOVIEW MRI, enables hospitals to request a total reimbursement of approx. $2,500, which is a significant incentive.
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