Nano-X Imaging (NNOX) surges 30% on FDA clearance

Friday saw a significant surge in the share price of Nano-X Imaging, as the stock climbed up to 30% in New York, marking its highest point since August. This increase came in the wake of the medical-imaging company receiving expanded US clearance for its Nanox.ARC system, a digital multi-source 3D tomosynthesis system designed for medical imaging.

The heightened investor interest followed an announcement by Cantor Fitzgerald on Thursday evening, where the firm upgraded its price target on Nano-X Imaging to $12 from the previous $11.

The adjustment came after a discussion with the management of NNOX, during which it was revealed that approximately half of the potential customers, accounting for around 200 systems, were awaiting the expanded indication for chest scans. This development is anticipated to foster faster deployment of the systems due to the new regulatory approval.

According to analyst Ross Osborn from Cantor Fitzgerald, the approval could potentially lead to an increased pace in the placement of Nanox.ARC systems. The systems that are currently installed are already equipped with the necessary hardware and can perform full-body scans with a simple software update.

This capability is significant as it implies that existing units can be quickly adapted to meet the new regulatory standards without the need for additional hardware modifications.

Before this latest uptick, the stock had experienced a rise of as much as 24% on Thursday, although it closed the day with little change. The excitement surrounding Nano-X Imaging has been building since the company's announcement on December 5, in which it reported receiving "additional FDA clearance to produce tomographic images for general use."

The clearance included a variety of applications such as pulmonary, intra-abdominal, and paranasal scans, in addition to the previously cleared indication for the musculoskeletal system.

The Israel-based Nano-X Imaging's recent regulatory success appears to have bolstered investor confidence, as reflected in the company's stock performance and the revised price target from Cantor Fitzgerald.

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Source: Investing.com