I've just listened to a replay of this morning's presentation as I couldn't attend. But wow, it was honestly significantly better than I had expected!
In my opinion, he revealed heaps more about what's commercially to be expected (than he usually does) for the particularly the coming days / weeks and months during the Q&A part which I was impressed with, and I was grateful for all the specific questions asked. He was not really too guarded at all and probably shared / alluded to things I didn't think he wouldn't otherwise say. Totally recommend that people watch / re-watch but I've summarised some of the key answers that got me really excited.
USA Reimbursement questions (these were great and gives us a sense of what they are thinking and doing):
- CPT I with CMS reimbursement was unexpected or unexpected this early and now that they have achieved it (not always the case for CPT I codes), it makes CPT III less of a priority (he said you are generally more guaranteed payment reimbursement for CPT III, but not CPT I).
- Accelerates and increases the chance of getting CPT I code (with reimbursement now for CPT III) despite not being a priority.
- Private insurers are already / currently being spoken to using a multi-prong strategy: 4DMedical, with now a larger reimbursement team in place, is actively reaching out to private insurers to "bring forward" private reimbursement to operate under the CPT I codes (instead of having to wait for CAT I)! Side by side, our healthcare providers are separately reaching out to private insurers to help us bring out private reimbursement too.
Philips MOU:- Allows us to accelerate growth and rapidly scale in North America, potentially via their large footprint in the VA and to other commercial organisations Philips are in place at, and outside of the US later on. Another large tool for us to drive expansion.
- A "Teaming Agreement" being the initial focus that could be expected in weeks (this calendar year expected) and we will get an update once achieved. This would convert to a Reseller Agreement to be signed likely early in the year.
- North American CEO and Global CEO of Philips were involved in discussions with us - so it is a big deal.
VA pilot and commercial opportunities and Authority to Operate (I reckon he revealed a lot more than anticipated):
- Further updates expected within this calendar year, that will give clarity on the VA pilot process.
- Sounds very confident about the pilot process happening.
- Pilot/s probably to occur over the next half year with anticipated wider scale expansion over the second half of calendar 2024.
- "Multiple applications" for Authority to Operate (ATO) in place (but the VA is not transparent with process) - only 1 needs to be granted. Very comfortable a second ATO is imminent.
DOD opportunities:- Pilot has been a success with positive feedback from the DOD.
- "we feel very close on that" regarding a potential deal / expansion - they are well into discussions!
Australian Medicare reimbursement (thanks for the person who asked a question I wanted to ask, and the answer was really music to my ears):
- "Absolutely their goal" to achieve Medicare reimbursement for their scans in Australia.
- They are currently "doing everything we can to bring that to fruition." They've never been determined as they are now to get this - previously it wasn't a priority, but I am glad they have changed tact (again quietly behind the scenes!) and US reimbursement being achieved probably helps too!
- Hopefully this is not too long into the new year!
RSNA 2023 conference (not part of the Q&A)
- "Such strong interest from so many places" (not further comment required).
Australia - general: - Positive discussions on I-MED and Integral Diagnostics progress and GP/radiologist feedback.
In light of the above and the full presentation, today's share price action arguably subdued (it finished in the green but still plenty of investors selling). And all this when AF didn't even go into details about the strong pipeline of other commercial agreements that might be expected this calendar year and next year with other organisations.
I've never been more confident in holding 4DX shares and hoping to buy more where the opportunities present. Hoping the market sees sense over the coming days/weeks/months and the longer term as the company continues to kick goals.
(20min delay)