New Polarean Imaging PLC chief executive Christopher von Jako said he has identified five growth initiatives that also extend the group’s cash runway out to the middle of next year.
The advanced lung MRI scanning specialist reported results for the first half of 2023, having received approval from the US Food and Drug Administration (FDA) for its XENOVIEW (xenon Xe 129 hyperpolarized gas) technology in December, which enabled it to start selling its products to the clinical market.
A first order for a xenon gas blend cylinder for the production of XENOVIEW was received from Cincinnati Children's Hospital Medical Center, leading to the first clinical scan in North America in May, which has been followed post-period by an upgrade of the polariser system at the University of Missouri Health Care to a clinical configuration.
Von Jako, who was appointed in June, said that while the company has been encouraged by the successful clinical conversion of two of its research sites and the positive response from physicians in both existing and prospective new sites, the process has gone more slowly than originally hoped.
Revenues of US$0.1 million were made during the first six months of the year from sales of the xenon gas blend cylinders and parts and service for polarisers installed at customer locations, compared to US$0.8 million a year earlier.
Operating expenses increased to US$7.7 million from US$7.0 million from commercialisation costs incurred to launch the products, leading to an overall loss before tax of US$7.4 million for the period, versus US$6.9 million last time.
There was net cash of US$9.9 million in the bank as of 30 June.
The slower-than-expected early commercial sales were primarily due to the hospital contracting process, which von Jako, who brought 30 years of industry experience when he joined Polarean, said was far from unusual when launching a first-in-class medical imaging technology.
Indeed, as sales of new medical technology are often irregular and difficult to forecast as the commercialisation process evolves, the board has withdrawn the previously stated commercial targets at this time, but will provide renewed guidance “at a suitable time”.
The near-term focus will be on “activities that we believe can deliver important milestones within our current cash runway”.
Following his initial review of strategic business drivers, von Jako said five growth initiatives have been identified, “which include driving utilisation at our newly established clinical sites, expanding to our highest priority targeted clinical sites, developing key industry partnerships, establishing reimbursement coverage and payment, and expanding our current FDA indication to include the even higher value interstitial lung and pulmonary vascular diseases”.
“Our new focus will also result in reduced operating expenses going forward which allows us to extend our cash runway until the end of Q2 2024.”
Continued progress on the above initiatives is expected to help support future financing at the appropriate time, he added.