Dr Boreham’s Crucible: 4D Medical

Small Caps | Aug 08 2022

Dedicated lung imaging pioneer 4D medical sees itself as a software company, with lots of future potential, including from the US military.

ASX code: ((4DX))

Market cap: $201.7m

Shares on issue: 294,491,837

Chief executive officer: Prof Andreas Fouras

Board: Bruce Rathie (chair), Prof Fouras, Lilian Bianchi, Dr Robert Figlin, John Livingston, Julian Sutton, Evonne Collier

Financials (June quarter 2022): customer receipts of $207,000, cash burn -$8.25m, cash balance $51.1m, quarters of available funding six.

Identifiable major shareholders: Velocimetry Consulting (Prof Fouras) 29.5%, Perennial Value Management 6.7%.

By Tim Boreham

The Melbourne-based lung imaging innovator soon might be able to boast of ‘by appointment to the US military’ among its early achievements.

As 4D noted in a recent media release, the US House of Representatives has called on the powerful US Department of Veterans Affairs to evaluate “emerging tech using existing x-ray imaging to derive four-dimensional models of lung function”.

That may sound vague, but not so much considering 4D Medical is the only current provider of dedicated 4-D lung imaging in the world.

The problem for Vet Affairs is that 3.5m military personnel have served in the Middle East since the 2001 al Qaida terrorist attacks and up to 10% have returned with serious, but hard-to-diagnose, lung conditions, such as constrictive bronchiolitis (more on this below).

A particular culprit is burn pits: the eco-unfriendly military practice of putting unsorted toxic waste into a hole, adding an accelerant and setting it alight - thus creating plumes of acrid, black smoke.

“We are starting to grasp the true health for many of the (veterans) who now suffer from incurable respiratory diseases which existing technologies failed to detect,” says 4D Medical founder and chief Prof Andreas Fouras.

We owe it to all veterans and their families to get them the help they need and deserve.

Meanwhile - and closer to home - 4D’s imaging has been adopted by I-Med, Australia’s biggest medical imaging chain.

Happy birthday

The 4D tech was the brainchild of Prof Fouras, a mechanical engineer who hung around Monash University’s wind tunnel labs. From this experience he realised that there was a better way to measure air movement through the lungs and the product evolved from that.

Funded with a few coins from the back of the couch, Prof Fouras founded 4DX - as the company was then known - in 2012.

4D listed on August 7, 2020 at 73 cents a share after an oversubscribed initial public offer.

August 7? Many happy returns and let’s hope we all have enough breath to blow out the candles.

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