Phase III trials usually come with significant risk but maybe not here in this case?

Polarean Imaging (LON:POLX) is a medical-imaging technology company with a gas polarisation platform that provides a non-invasive, radiation-free method to visualise lung structure and function using MRI. MRI scans generally aren’t very useful in assessing lung function, but Polarean’s 129Xe gas is trying to change that.

Although yet to receive clinical-approval, Polarean has already sold 25 polarisers to medical research institutions. Polarean is expected to complete it's Phase 3 trials any day now. I say the trial is relatively low risk because all they need to do is prove non-inferiority against 133Xe scintigraphy which has been in clinical use for over 40 years now and uses radioactive pharmaceutical contrast agents and produces low resolution 2-dimensional images. Additionally Polarean have already successfully completed a ‘Pilot Study’ where patients underwent lung imaging using both the Company’s technology and 133Xe scintigraphy.

Their broker estimates that with only 78 clinical units installed Polarean could generate c. US$41m in revenue and US$16m in Free Cash Flow.

For anyone who wants to look further Polarean have Investors Symposium video on their website that provides a good recent update http://www.polarean.com/index.html.

I'm keen to hear what others think?

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