Nano-X Imaging Ltd. (NNOX) stock prices were down by a significant 13.98% shortly after market trading commenced on August 10th 2021, bringing the price per share down to USD$25.91 early on in the trading day.
NNOX Stock’s New Acquisitions
August 10th 2021 saw NNOX stock announce its entry into two agreements. These agreements are intended to facilitate the creation of a globally connected, end-to-end radiology solution. The company entered into an agreement with leading medical artificial intelligence developed, Zebra Medical Vision. The agreement will be an all-stock transaction for USD$100 million upfront, as well as another USD$100 million tied to the reaching of prespecified milestones.
Acquisition of USARAD
The company also announced entering into a binding letter of intent to acquire USARAD and Medical Diagnostics Web. Together, the two operate a global network of more than 300 radiologists. Total consideration for the acquisition is USD$30 million. Of this, USD$21 million will be in the form of shares of NNOX stock, while USD$9 million will be in cash.
Changing the Radiology Landscape
The company’s expansion of accessibility in regard to medical imagine solves on of the roadblocks to population health management. This access is granted through the widespread deployment of the company’s Nanox.ARC. The world has a shortage of trained radiologists, which presents a substantial bottleneck in the imaging process. Nanox.ARC, in conjunction with the company’s recent acquisitions, will allow NNOX stock to support their systems with a large network of radiologists empowered with highly advanced AI algorithms.
Scope of NNOX Stock
This end-to-end, globally connected medical imaging solution will facilitate the provision of rapid interpretation of medical images. This will translate images into actionable medical interventions, while also representing a step toward the company’s vision. This vision is in regard to the provision of true preventative health care in the nation’s population. The company continues to develop its multi-source Nanox.ARC, with the last quarterly update including news of a 510(k) submission. The 510(k) form submitted to the U.S Food and Drug Administration was for the first version of multi-source Nanox.ARC. The company is doubling down on its goal of deploying 15,000 by the end of 2024.
Future Outlook for NNOX Stock
Armed with its recent new acquisitions, NNOX stock is poised to capitalize on the expanded scope of opportunities ahead of it. The company is keen to take measures to recover from the sharp dip in shareholder value. Current and potential investors are hopeful that management will be able to leverage the resources at their disposal. This will, hopefully, result in sustained and significant increases in shareholder value.
