Amidst the current pandemic, the Israeli company’s stock prices soar. That is, despite having no revenue and FDA approval for its mobile CT scanners.
Nanox Imaging Ltd. (Nasdaq: NNOX) was able to mark up initial public offering by as much as 28%. The company was able to raise its IPO by $165.2 million, with a company valuation of $800 million. It happened even though Nanox has yet to report any revenue, and while their lightweight and mobile CT scanners do not have FDA approval yet.
In just two days, the company has reached a market cap of $1.185 billion. On just the first day of trading, the company’s share price rose up to 20.56%. The following day, the share price went up from 23.04% to 26.70%. This trend does not seem to stop anytime soon, though, as after-hours trading prices also had a 29% increase.
Nanox Imaging Ltd. was founded in 2012 by its current CEO Ran Poliakine. It is based in Neve Ilan, Israel, near Jerusalem. The company was able to raise $137 million even before the IPO from several foreign investors like Fuji, Jin Ji Full, SK Telecom, Industrial Alliance, Foxconn, and Yozma Korea.
The company developed a lightweight CT scanner that weighs only 200 kilograms. In comparison, most CT scanners in the market today weigh up to 2000 kilograms, giving it an edge in portability. Nanox developed a system that combines a digital X-ray device and an AI cloud-based software, named Nanox.ARC and Nanox.CLOUD, respectively. The new CT scanner can be produced for only $10,000, which is a tiny fraction of the cost of a regular CT scanner that can reach up to millions. The company’s pay-per-scan model of medical screening (MSaaS) allows greater coverage and accessibility to customers.