What happened
Shares of Nano-X Imaging (NNOX -1.87%) were up 10% Wednesday morning, a day after the stock fell below $17 for the first time since May 18. The healthcare company specializes in medical imaging equipment and systems and its shares are up more than 88% so far this year.
So what
Nano-X had been surging ever since the company announced on May 1 that it had received clearance from the Food and Drug Administration (FDA) to market Nanox.ARC, including the Nanox.CLOUD, its accompanying cloud-based infrastructure, as a stationary X-ray system on adults. The device is a multi-source digital 3D tomosynthesis system that uses cold cathode X-ray tubes. The company intends to charge per scan for the system.
The company has attracted a lot of attention as a potential disruptor to standard X-rays, which have evolved little since they were discovered in 1895. The company said it intends to work with the FDA on other regulatory clearances for the Nanox.ARC.
Now what
The stock had risen so much this year that investors jumped in at the momentary dip. There are still legitimate questions about the long-term prospects for Nano-X. In the first quarter, the company reported revenue of $2.4 million, mostly from the sale of teleradiology services and artificial intelligence solutions. It also had a net loss of $11.8 million and reported it had $91 million in cash. It's hard to tell what it will take for the company to market a new product in a very entrenched industry. However, some big names are interested in the company's future. Healthcare giant Johnson & Johnson has bought 317,704 shares of the company.
