Signify Premium Insight: Great Expectations – The Issue for Nanox
Published: February 16, 2021
There are few medical imaging companies that, in recent months, have seen their stock taken on as wild a ride as Nanox.
When the Israeli firm went public last August, its share price rocketed as investors bought into its promise of offering 2D and 3D medical imaging systems for hitherto unheard of prices by utilising a revolutionary new X-ray source. This rally didn’t last. Before long a growing number of traders were adopting short positions on the company, and some commenters even went as far as comparing the start-up to the disgraced blood testing firm, Theranos, insisting that Nanox had no special technology at all. Nanox shares then rose on the promise of a product demonstration at RSNA. This demo came and went, but left many investors underwhelmed after it failed to highlight some of Nanox’s boldest claims. There were further setbacks in early February, when it was revealed that the FDA needed more information before it could grant approval for the company’s ARC scanner again casting doubts on the company’s core technology. At the time of writing, the latest twist in this tale is a note in an SEC filing asserting that the review organisation recommended to the FDA that Nanox’s technology be approved. This has led to yet another bounce in the share price.