Polarean Imaging (POLX) , a leader in advanced MRI lung imaging technology, announced its interim results for the 6 months ended June 30, 2025 (H1 2025). Polarean is best known for its proprietary Xenon MRI technology XENOVIEW, which uses hyperpolarised Xenon Xe-129 to illuminate hidden lung diseases non-invasively.

Polarean reported a 36% increase in consumable sales in H1 compared to the same period last year, thanks to higher utilisation by existing customers. Group revenues were US$0.6m during the half, a year-on-year decrease reflecting the challenging US environment for capital equipment.

Operating expenses came in at US$5.6m, broadly flat from H1 2024 excluding non-cash share-based payment costs, thanks to strict cost controls offsetting higher selling and distribution costs. Polarean ended the period with US$7.3m cash, expected to provide sufficient runway through the end of Q2 2026.

Operationally, POLX highlighted several milestones achieved during the half. Notably, POLX received US FDA approval to lower the minimum patent age for XENOVIEW from 12 to 6, expanding its total addressable market by c. 1 million patients. Additionally, POLX is in advanced talks with the FDA to broaden the XENOVIEW label to include gas exchange indications, representing another major expansion for the platform.

On the partnerships front, Polarean expanded its collaboration with Philips to increase access to advanced lung MRI for patients with obstructive lung diseases. POLX also expanded its partnership with VIDA Diagnostics to support pharma-sponsored research using Xenon MRI, representing a major expansion of POLX's technology into the research market.

Another collaboration with Ascend Imaging will see increased promotion of Polarean's products in certain US states, expected to boost sales. Under the agreement, Ascend will act as a non-exclusive, independent manufacturer's representative in 4 US states, with the potential to expand the arrangement to more areas.

In China, POLX secured a key patent covering the use of its Xenon MRI platform to visualise pulmonary gas exchange and microvascular blood flow in real time. In Taiwan, POLX signed a distribution agreement with Sumtage Enterprise to distribute Polarean's products on the island, marking POLX's first international commercial partnership, in line with its strategy to expand beyond the US.

Despite a robust pipeline of outstanding quotes worth US$21m - a 650% increase year-on-year - and a strong backlog of sales totaling US$1.2m, POLX lowered its revenue guidance. The company now expects US$2.5-3.5m in revenues for FY25, with the revision attributed to transient headwinds related to NIH grant funding cuts and Medicaid cuts under the recently passed OBBBA in the US. However, management expects a return to prior levels of activity in 2026, projecting US$5-6m in revenues for FY26.

 

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After tripling revenues in FY24, Polarean delivers a resilient H1 2025 despite a challenging regulatory environment in the US, namely reductions in NIH grant funding and the impact of the OBBBA on Medicaid. While the company has cautiously revised its FY25 revenue guidance to reflect these headwinds, their effect should be temporary, as the US market is expected to adapt and return to normal levels of activity in FY26. So far within the sector, some US companies have delayed purchases, but not cancelled orders in large numbers. POLX is projecting its revenues to bounce back to US$5-6m in FY26.

There is further reason to be optimistic thanks to POLX's substantial operational progress achieved YTD, large US$21m backlog of outstanding quotes (up 650% YOY), and solid US$7.3m cash balance that should support operations through at least Q2 2026. With the expanded FDA label to include a gas exchange indication, rapidly growing commercial partnerships, and tight cost controls, the company's growth trajectory should continue in FY26.

The gas exchange indication represents a major opportunity to expand the XENOVIEW platform. It should enable POLX to reach profitability in FY27-FY28 after an incremental investment of c. US$20m. The cost of the trial required to secure the indication was recently slashed from est. US$9-11m to US$4.0-4.5m, helping keep costs down and reach profitability quicker.

In terms of operational momentum, POLX further expanded its collaboration with Philips post-period to include the XENOVIEW Chest Coil for use on Philips 3T MRI systems, enabling a complete scan in under 1 minute. XENOVIEW is already FDA cleared for its MRI indication and used in Philips machines. The new promotion and sales agreement with Ascend should also help US sales into H2 2026 and FY26.

Furthermore, the FDA approval to lower the minimum patent age for XENOVIEW from 12 to 6 represents a major expansion into pediatric care where there is significant unmet need in chronic lung care. The first to implement the new indication will be the world-renowned Cincinnati Children's Hospital. Strong momentum in Asia in terms of IP and commercial partnerships also bodes well for POLX's international expansion.

 

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