GCIPolarean Imaging raises US$10m to support XENOVIEW
() , a UK-based medical imaging technology company, said it successfully raised US$10m via a placing and subscription of 790.7m new shares at 1p/share. The subscription included significant investments from existing investors NUKEM Isotopes, Bracco Imaging, and certain directors and management.
NUKEM is a global supplier of Xenon-129 and current 10.4% owner of that subscribed for 196.7m shares, representing an investment of US$2.5m. Bracco is a diagnostic imaging provider, currently holding a 7.6% interest in that subscribed for 157.3m shares, representing an investment of US$2m. In total, management subscribed for 25.2m shares, representing an aggregate investment of c. US$321k.
Polarean said it would use the net proceeds to accelerate commercialisation of its Xenon MRI technology XENOVEIW, to support continued investment in R&D including finalisation of an FDA plan to secure a gas exchange indication for XENOVIEW, to develop new partnerships, and provide additional working capital.
Christopher von Jako, CEO, commenting: "We are delighted to announce today's successful Placing and Subscription of $10 million. We express our gratitude to our existing shareholders who have reaffirmed their support in this transaction, including NUKEM Isotopes GmbH and Bracco Imaging S.p.A. Notably, we have also been able to attract demand from new investors in this transaction, which will allow us to significantly broaden our shareholder register. The net proceeds of the Fundraise will enable the Company to substantially progress implementation of its five-pillar growth strategy in pursuit of its mission to revolutionise pulmonary medicine."
View from Vox
Polarean successfully raises US$10m with significant contributions from existing major investors NUKEM and Bracco who continue to support 's novel Xenon MRI technology using its proprietary contrast agent XENOVIEW. '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 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, 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, 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 's existing cash reserves should extend the company's cash runway into Q1 2026. 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, 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 '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.
Follow News & Updates from Polarean Imaging:
Disclaimer & Declaration of Interest
The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.