14/09/2006
Floated on AIM in February with a £16m oversubscribed placing at 155p, and led by excitable former NASA scientist Dr Tom Francke, XCounter is developing new technology for capturing 3D digital medical X-ray images that could transform a $6.7bn market.
In short, the company’s technology facilitates the production of sharper 3D images with lower levels of radiation than current 3D technology, at competitive cost. Lower levels of radiation – reductions of 2 to 7 times are achievable in mammography alone – are safer for patients and bring superior image quality. In March, a patient study for XCounter’s first product, a 3-D digital mammography system for breast cancer screening, successfully completed, with positive results, and further products are in development for general body and cardiac imaging.
Francke’s strategy is to provide X-ray manufacturing giants and distributors with unique imaging solutions, to act as their ‘outsourced development house’ and target a healthy slice of the digital X-ray system market. XCounter has just reported half time figures to June revealing pre-tax losses of £2.4m in line with expectations and net cash at the interim was a bumper £13.4m, leaving plenty of funds with which to develop the business.
Investment interest lies in the fact that ‘everything is going 3D in X-ray imaging’, and XCounter looks well positioned to capitalise if this is indeed so. Like a biotech business, the company is pursuing a commercialisation strategy and hopes to snare licensing deals with major X-ray system makers – discussions are already underway with a number of parties.
Boasting technology that could save hospitals money as well as save lives by helping earlier diagnosis of disease by radiologists, the shares have strong ethical appeal and look an intelligent punt.
| Market cap: | £94.4m |
| PE Forecast: | n/a |
| Share price: | 203p |
| AIM | £20.03m |
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| Other company articles: |
| 04/05/2007 |
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| 14/09/2006 |
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