ASX Health Stocks: 4DX shares continue ascent after signing a deal with global player, Philips

ASX stock 4DMedical jumped 10 per cent after inking a deal to recruit a leading global healthcare company for its push into North America.

Eddy Sunarto

2 min read

November 29, 2023 - 2:43PM

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Yep, this is a big deal. Picture: Getty Images

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4DMedical (ASX:4DX) jumped 10 per cent on Wednesday morning after announcing a memorandum of understanding (MoU) with Koninklijke Philips N.V. (NYSE:PHG).

It was still up by more than 10 per cent for the day at 2.30pm (AEDT).

Philips is a leading global healthcare company, and the deal will establish a strategic collaboration to expand federal and commercial sales opportunities for 4DX’s XV Technology in North America.

The initial focus of the partnership will be to offer 4D lung imaging as a critical screening solution for US Veterans exposed to burn pits.

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Philips is one of the US. Veterans Health Administration’s (VA) most important partners; around 50 per cent of VA clinics use Philips’ imaging systems.

4DX says the signing of this MoU represents a major step forward in the company’s commercialisation strategy, particularly within the VA.

Having access to Philips’ team of industry experts, with unparalleled relationships in global healthcare, provides an unprecedented opportunity to accelerate 4DMedical’s go-to-market activities, particularly in the VA, says 4DX.

Under the terms of the MoU, 4DMedical’s XV Technology will be added to Philips’ product catalogue and offered as a third-party solution.

Subsequently, the parties intend to expand access to both software and hardware solutions, including to other US based Federal agencies and commercial organisations in North America. The parties will also consider other markets outside of North America for expansion.

“To partner with a healthcare powerhouse such as Philips is a phenomenal opportunity for 4D to accelerate our mission,” said 4D Medical’s CEO and founder, Andreas Fouras.

“I am incredibly excited by the reach this will give our technology, and importantly, the impact this will have for millions of Veterans and their caregivers.”

Fisher & Paykel notches strong first half

Fisher & Paykel Healthcare (ASX:FPH) has released pleasing results for the first half of the 2024 financial year.

For the six months ended September 30, total operating revenue was $803.7 million, a 16 per cent increase from the pcp.

Net profit after tax for the first half was $107.3 million, a 12 per cent increase from the pcp, or a 22 per cent increase in constant currency.

“Our first half result indicates a continuation of stable ordering patterns in our Hospital business, and a robust performance for Homecare,” said CEI Lewis Gradon.

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In the Hospital product group, which includes humidification products used in respiratory, acute and surgical care, revenue for the first half was $487.5 million. This marks an increase of 11 per cent on the pcp.

“We continued to see strong demand for hospital consumables across the product portfolio in the first half, and hardware demand was solid.”

Looking ahead, the company expects operating revenue for the full 2024 financial year to be approximately $1.7 billion, and net profit after tax to be in the range of approximately $250 million to $260 million.

“Historically, sales of our hospital consumables are typically higher in the second half, reflecting seasonal patterns of hospitals,” said Gradon.

“We are currently expecting that our revenue guidance approximation incorporates the range of pre-Covid historical seasonality in hospital consumables.”

At 2.30pm Wednesday (AEDT), FPH’s share price was up more than 7 per cent for the day.

This content first appeared on stockhead.com.au

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Originally published as ASX Health Stocks: 4DX shares continue ascent after signing a deal with global player, Philips