Polarean Imaging PLC (AIM:POLX, OTC:PLLWF) lowered its revenue outlook for 2025 after cuts to US medical research and hospital funding delayed purchasing decisions for its lung imaging systems.
However, it provided a more upbeat, longer-term commercial assessment of demand for its xenon-based MRI technology.
Polarean highlighted a strong pipeline. Outstanding quotes to potential customers total more than $21 million, up more than sixfold from a year ago, while its backlog stood at $1.2 million.
Management said it remains on track for revenues of $5 million to $6 million in 2026 as hospitals adjust to the new funding environment
In the near term, it said that it now expects revenue between $2.5 million and $3.5 million this year, down from earlier guidance of $5 million to $6 million.
The shortfall reflects headwinds from reduced funding at the US National Institutes of Health and Medicaid cuts under the newly passed One Big Beautiful Bill Act. Together, those moves have hit hospital budgets and slowed capital spending.
Group revenue for the first half fell to $0.6 million from $1.1 million a year earlier, as no new MRI systems were sold.
Sales of consumables rose 36%, showing greater use by existing customers. Operating expenses rose to $5.6 million, largely due to higher non-cash share-based payments, while cash reserves stood at $7.3 million at the end of June, expected to last through the second quarter of 2026.
The company has also broadened its commercial footprint. In May, it expanded its partnership with Philips to improve access to radiation-free lung MRI, signed a distribution deal in Taiwan, and strengthened its presence in the US with a new representative agreement.
Regulatory progress included an FDA approval to expand its XENOVIEW label to children as young as six and a planned clinical trial of gas-exchange imaging that is now expected to cost less than half of earlier estimates.
Chief executive Christopher von Jako said the company was “building the foundation” to transform pulmonary medicine despite funding challenges. “Our goal is not merely to participate in this field, but to redefine it,” he said.
Polarean’s xenon MRI technology allows clinicians to assess lung function without radiation and is increasingly being used in research on asthma, cystic fibrosis, and transplant outcomes.