4D Medical (4DX) listed today, with a closing price of $1.71 - enterprise value of approximately $400m (~$450m market cap).
The company convert X-ray scans into a four-dimensional image of a patient’s lung function to enhance the capacity of physicians in diagnosis and treatment of lung disease.
The company is presented as a disruptive technology to existing respiratory diagnostics. Mentions an addressable market of $13.7 billion in the US.
FY19 Revenue = $700k, loss = ~$7m 1HFY20 Revenue = $1.1m, loss = ~$5m
A timely reminder of the valuations tech companies with large addressable global markets command.
As a comparison Respiri is still under $100m market cap despite conservative $6-8 mn revenue guidance (just for the small Australian market), and a global pharma partner with capacity to leverage the tech in key overseas markets.
Dexcom who have done for Diabetes, what Respiri can do for asthma, has a market cap of $US 42 billion, $US1.4 billion revenue (30 times revenue multiple), and reported their first profit in 2019.
Further confirmation that RSH is currently trading at least half price of where it should be, for this stage of the journey......
RSH Price at posting:
15.0¢ Sentiment: Buy Disclosure: Held
