GCIPolarean Imaging sees revenue surge and capital infusion in H1, ups full-year revenue forecast
() , a commercial-stage MRI technology company, announced its interim results for the 6 months to June 30, 2024 (1H24). is best known for its proprietary Xenon MRI technology XENOVIEW, which uses hyperpolarised Xenon Xe 129 to illuminate hidden lung diseases non-invasively.
Polarean saw group revenues climb to US$1.1m from US$0.1m in 1H23, reflecting significant commercial traction. Operating expenses narrowed to US$4.6m from US$7.7m the previous year as the company focused on expenditures in the highest-value areas.
successfully raised US$12.6m during the period, including the participation of existing partners NUKEM Isotopes and Bracco Imaging, extending its cash runway until at least Q1 2026.
Notable contract wins during the period include a second de novo order for a Xenon MRI system from the University of Alabama at Birmingham (UAB) Hospital, a top-tier academic medical hospital in the southern US; and a trade-in agreement with Cincinnati Children's Hospital, whereby exchanged the hospital's existing research hyperpolariser for a new clinical-grade Xenon MRI unit made by .
On the patent front, Polarean secured a pivotal US patent for dynamic cardiopulmonary bloodflow imaging with Xenon MRI, expanding its utility in the diagnosis and monitoring of pulmonary vascular diseases.
Based on its positive sales momentum and orders received to date, raised its revenue guidance for FY24 to US$2.5-$3.0m from the previous US$2.0m-2.5m.
Christopher von Jako, PhD, CEO of Polarean, commenting: "We are very pleased with the results for the first half of 2024. The revenue is tangible proof that our five-pillar growth strategy to revolutionise pulmonary medicine is starting to produce results. The installation of the new hyperpolariser system at Cincinnati Children's and the receipt of the de novo order from UAB Hospital, expected to be installed later this year, are important milestones for the Company toward achieving the revenue targets laid out in our February 2024 strategy update. Additionally, the orders from UVA Health and KUMC in July 2024 further our progress toward converting legacy research sites to performing both research and clinical scans, and this continues to highlight the growing interest in this important technology from pulmonary clinicians."
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Polarean reports an excellent set of results for 1H24 as its Xenon MRI technology continues to gain commercial traction. Polarean's Xenon MRI 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.
During the period, drove significantly increased revenues while strictly controlling costs as it refocused on its highest-value opportunities. Sales came in at US$1.1m from US$0.1 a year ago, on the back of Xenon MRI orders from 2 world-renowned US hospitals - Cincinnati Children's and the University of Alabama at Birmingham. Additionally, sales of clinical and research Xenon gas blend cylinders, and parts and services for its installed customers complemented 's turnover.
Momentum is strong into 2H with additional orders already placed by the University of Virginia Health System, University of Kansas Medical Center, plus the existing University of Missouri Health Care contract, driving significant revenue visibility and prompting to raise its full-year revenue guidance by US$0.5m to US$2.5-$3.0m. In total, the company now has 21 sites that have either installed or ordered hyperpolariser systems.
also advanced the regulatory front with the submission of an NDA supplement to the US FDA to allow the administration of XENOVIEW to patients aged 6 and older, down from the current age limit of 12. If successful, this will significantly expand the product's utility in paediatric care. The FDA has already granted XENOVIEW a New Chemical Entity designation, providing a 5-year market exclusivity period, and issued 510(k) clearance for a specialised MRI chest coil compatible with Philips 3.0T MRI scanners.
's overall loss before tax narrowed to US$4.0m from US$7.4m a year ago, thanks to abovementioned higher revenues and lower operating expenses. The company successfully raised US$12.6m in June 2024 and is now well-positioned to expand its sales efforts. With the proceeds from the fundraise, held a comfortable US$15.2m in net cash or cash eq on June 30, 2024.
Notably, 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 for XENOVIEW. The new code, along with additional existing codes, enables hospitals to request a total reimbursement of approx. $2,500, which is a significant incentive.
By end of FY24, should have a total installed clinical base of 5-7 systems with sites performing 3-4 scans/week, enabling it to earn a positive ROI on XENOVIEW. 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.
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