For a company fighting to turn its clever lung imaging technology into a commercial success, Polarean Imaging PLC (AIM:POLX, OTC:PLLWF) could do with a bit of oxygen.
Stifel’s analysts think the latest deal to expand its US reach might just provide that.
The AIM-listed group, whose shares have struggled against headwinds not of its making in the US, has extended its sales partnership with Ascend Imaging, a specialist distributor of MRI equipment.
The new agreement takes Ascend’s coverage from four to 19 American states, a move Stifel believes makes strategic sense. It should help Polarean reach more hospitals and clinics without ballooning its own costs.
Ascend, which already works with Philips and other imaging groups, will keep acting as a non-exclusive representative, helping to promote and sell Polarean’s Xenon MRI system.
Its sales team, with an average of eight years’ experience in the field, will identify new customers, drum up engagement and help close deals alongside Polarean’s in-house team.
For context, Polarean’s technology is based on inhaled hyperpolarised xenon gas that allows standard MRI scanners to create detailed images of lung function.
It is an FDA-approved diagnostic tool known as Xenoview, aimed at improving how lung diseases are diagnosed and monitored.
The group’s market value has shrunk to just under £6 million, a far cry from the excitement that followed US approval in 2022.
Sales remain small, at an expected $2.5 million this year, but Stifel argues that the long-term commercial and clinical potential is intact.
The broker keeps a 'buy' rating and a 4p price target, valuing the shares on a net present value basis. To put that into context the stock (up 0.075p today) is currently changing hands for 0.55p. So, this is a big vote of confidence.
The challenge, as Stifel sees it, is execution. The firm must convert early interest in Xenoview into steady orders while managing costs and securing the funds needed for further clinical work.
Still, expanding its partnership network across almost 20 states is a big step in the right direction.