3 Reasons to add Feedback #FDBK to your Watchlist - Vox Markets

3 Reasons to add Feedback #FDBK to your Watchlist

The content of this blog (or content associated with it) is not intended as investment advice. I currently hold shares in Feedback (FDBK). Please do your own research.

Feedback #FDBK
Share Price: 1.9P (but was 1.6p when I started to write this blog a few days ago)
Market Capitalisation: £4.8M

Feedback plc is a specialist medical imaging technology company. It develops software and systems that provide innovative techniques and improved workflows for practitioners involved in medical research and treating patients.

TexRAD®, the company’s patented technology is an innovative algorithm that quantifies textures in medical images.

It has the potential to assist clinicians in diagnosis, prognosis and treatment of patients with cancer and is currently installed in over 40 of the world’s leading research institutions across Europe, North America and Asia.

Currently, doctors rely on medical imaging to make decisions on patient care and treatment, but these are limited to what can be seen by the human eye. TexRAD measures textures in CT, MRI & PETS scans that doctors may not otherwise recognise. It measures heterogeneity and allows comparisons between samples, subjects and time periods meaning cancer treatments can be better tailored to patient needs.

3 Reasons to add Feedback #FDBK to your Watchlist


On the 20th November, Feedback announced the first CE marked release of “TexRAD® Lung”.

Previous to this CE mark, TexRAD® Lung could only be used for research purposes but the award of the CE mark means Feedback can now sell TexRAD Lung to hospitals or medical imaging companies, satisfying the quality, safety and performance standards required for medical devices in the European Union.

Dr Alastair Riddell, Chairman at Feedback plc:

“TexRAD® Lung is our first TexRAD® product with a CE mark which represents a significant accomplishment. This development will expedite TexRAD®’s clinical use in the treatment of lung cancer across the EU, expand its market presence and support the Company’s ongoing commercial discussions for the technology. We expect that the rigorous regulatory review required for the CE mark will pave the way for TexRAD®’s clinical use worldwide”

Lung cancer has been the most common cancer in the world for several decades, estimated at 13% of all cancer diagnoses globally. It is also the most common cause of death from cancer worldwide, estimated to be responsible for nearly one in five. In the EU alone there are approximately 417,000 new cases of lung cancer every year.

Radiologists are under significant pressure due to increasing patient numbers, more examinations required per patient and the need for earlier diagnosis. By analysing the texture features in CT scans, TexRAD®’s quantitative imaging capabilities provide clinicians with additional information to make better decisions in order to improve patient outcomes.


At 1.9p, (although it was 1.6p when I started writing this blog) the current share price of Feedback is around 9 month low and yet they are now in a better position to commercalise their software than ever. So this begs the question, why is the share price so low?

The answer is selling pressure and probably a bit of caution over a potential fundraise. First of all let’s deal with the selling pressure.


On the 8th June 2017 the company announced that Trevor Brown, “resigned as a Non-Executive Director of Feedback, with immediate effect, in order to allow the Company to move rapidly to the next stage in its development and to devote more time to his other business interests.”

On 26th April 2016 Trevor held 55,089,111 shares which was 22.39% of the entire issued share capital of the company.

On 14th September (after Trevor resigned) the company announced that Trevor Brown held 40,929,111 shares, representing 16.61% of the company and the most recent RNS regarding Trevor dealings was on 20th December, which shows he held 30,929,111 shares representing 12.55% of the issued ordinary shares of the company.

So between June and December Trevor sold 24,160,000 shares, at an average price of 2.5p this equals £604k. This is a lot of downward pressure for a company with a market cap below £5m.

I have no idea whether Trevor Brown intends to sell his entire holding but what I do know is this, the selling will not go on indefinitely and when it ends the share price will bounce, especially if the company continues to release positive news from one of the many collaborations or agreements they’ve announced in the last few years.


As regards a fundraise, on 26th April Feedback raised £750,000 at a price of 2.75p and in their final results for 12 months ended 31st May they had cash of £696,811. In their cash flow statement their loss before tax was £300,927 on revenue of £465,885.

If we assume a similar cash burn on an equivalent revenue then their £696,811 cash could last for another 2 years BUT post period end they signed distribution agreements in Korea and China, where they have, “have seen an increase in purchase orders for TexRAD® from leading medical institutions in South Korea and are receiving significant interest in China”. Plus the CE mark will obviously open routes to market.

So, I would not say a placing is imminent but if it is, I can’t see it being for a large sum as their cash burn is relatively modest.


Feedback has now achieved a CE mark for theirTexRAD® Lung product. This allows them to sell it commercially across the EU. Up until now it has been installed in over 40 of the world’s leading research institutions across Europe, North America, Asia and Australasia.  These research institutions trial the software, then publish academic papers which examine it’s uses and possible effectiveness.

For example, one of the many papers published was one in September 2016 from the University College London whose, “retrospective study of 67 prostate cancer patients which demonstrated that TexRAD® analysis of multi-parametric MRI images may be able to identify the presence of clinically significant prostate cancers in the transition zone and therefore could potentially assist in optimising prostate radiologists’ workflow.”

Commercial organisations read academic papers or Feedback approach these organisations producing the findings of these papers. The commercial organisation would then buy a licence to use Feedback’s software.

On 23rd November 2015, Feedback plc announced it, “signed a Memorandum of Understanding with Alliance Medical Group with the intention of integrating Feedback’s TexRAD texture analysis software into Alliance’s lung cancer imaging service.”

Alliance Medical are Europe’s leading independent provider of medical imaging services and are responsible for more than 50 per cent of all NHS PET-CT scans.

In Feedback’s Interim Report for the 6 months ended 30th November 2016, they announced they’d, “made good progress on a technical solution that would allow the integration of TexRAD into Alliance’s network of PET/CT scanners in UK hospitals and a prototype version has been demonstrated to potential users. The next steps include applying for a CE mark for a medical device which provides analysis of lung PET/CT images with added prognostication through TexRAD. We hope to gain the CE mark before the end of the current financial year. Thereafter the plan is to expand our customer base significantly by developing relationships with imaging hardware companies as well as Alliance to ensure wide market access.

So now Feedback has achieved a CE mark, it allows Alliance Medical to clinically test Feedback’s software over the next few months and it successful will be installed across their machines globally.

Separately, on 3oth March 2017 Feedback signed a, Letter of Intent with a leading global medical imaging company which would make TexRAD Lung available for purchase on its diagnostic imaging solutions platform. This would, in due course, enable easy access to TexRAD Lung for hundreds of potential users around the world on a subscription basis.”

This is a guess on my part but if you Google the phrase, “leading global medical imaging company”, one of the companies that come top of the search is, GE Healthcare.

This guess may seem like a stab in the dark but Feedback’s Chairman Dr Riddell, spent five years managing sales and marketing for oncology and imaging products for Amersham International (now GE Healthcare) plus Tim Irish who joined the board in June, replacing Trevor Brown, also held a senior position responsible for medical imaging at GE Healthcare. Combine this with the fact that they’ve recently signed an exclusive TexRAD® distributor agreement in China with Boya an approved vendor to GE Healthcare China and the guess starts to become a little more informed.

The CE mark for TexRAD® Lung was a major milestone for Feedback, which allows their software to be used clinically in Alliance Medical’s scanners. Should this testing go well, and Alastair Riddell seems very confident their software will pass any rigorous amount of testing, then it will be used in their scanners globally. The results of these test can’t be far off.

This CE mark will also help in regards to the global medical imaging company they’ve signed a letter of intent with, which would make TexRAD Lung available for purchase on its diagnostic imaging solutions platform.

Let’s not forget, this is just one of many products Feedback intend to develop, their TexRAD® software also performs similar analysis of the brain, prostate, liver and other parts of the body but the CE mark for lung really paves the way for the development of these alternatives.

The attraction of a business like Feedback is the scalability off it’s product. As it’s software, it can be replicated worldwide, quickly at very low cost, should it need to be.

As I write this article, I note there is very little stock available to buy and have heard there may not be any, not in volume anyway, in the near future.

Worth noting is the fact that back in May 2016, Feedback sold its 50% equity interest in StoneChecker, wholly owned by Flying Brands (in which Trevor Brown owns 24.98% of the shares). I wrote favourably about Flying Brands recently and should they enjoy commercial success then Feedback will also share in their good fortune as they will continue to receive royalty and licence payments.

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The content of this blog (or content associated with it) is not intended as investment advice. The author holds an interest in the company mentioned. Please do your own research.


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