Nano-X Imaging (NNOX) Soars 30% Following FDA Approval

On Friday, the stock price of Nano-X Imaging saw a significant increase, rising by as much as 30% in New York, reaching its highest level since August. This rise followed the company receiving expanded approval in the U.S. for its Nanox.ARC system. The Nanox.ARC is a digital multi-source 3D tomosynthesis system designed for medical imaging.

The increase in investor interest came after Cantor Fitzgerald raised its price target for Nano-X Imaging from $11 to $12 on Thursday evening. This adjustment followed a meeting with NNOX management, during which it was revealed that about half of the potential clients, covering approximately 200 systems, were awaiting expanded indications for breast scans. This development is expected to facilitate faster deployment of the systems due to the new regulatory approval.

According to analyst Ross Osborn from Cantor Fitzgerald, the approval could potentially lead to an increased rate of installations for Nanox.ARC systems. The already installed systems possess the necessary hardware and can perform full-body scans with a simple software update.

This capability is significant as it means that existing units can quickly adapt to meet new regulatory standards without the need for additional hardware changes. Before this recent surge, the stock had risen by as much as 24% on Thursday but closed the day with minimal change. Excitement surrounding Nano-X Imaging has been growing since the company announced on December 5 that it had received "additional FDA approval for producing tomographic images for general use."

The approval included various applications such as pulmonary, intra-abdominal, and paranasal scans, in addition to the previously approved musculoskeletal indication. The recent regulatory success of Israel-based Nano-X Imaging appears to have boosted investor confidence, as reflected in the company's stock performance and Cantor Fitzgerald's revised price target.