ASX health stocks EMvision (ASX:EMV) and 4D Medical (ASX:4DX) have been awarded over $37 million between them in government grants.

The companies will share in $8 million and $28.9 million respectively as part of the Medical Research Future Fund (MRFF) – grants ultimately awarded to consortiums these are major players in.

In EMvision’s case the money specifically went to the Australian Stroke Alliance while 4D Medical will share in money awarded to the Australian Lung Health Initiative.

The initiative was announced by Health Minister Greg Hunt on Friday and yesterday Micro-X (ASX:MX1) became the first ASX listed company to announce it had won a grant – to the tune of $8 million.

All three of these ASX health companies that were recipients of a grant under the scheme specialise in medical imaging. EMvision is focused on detecting stroke and 4D Medical focuses on detecting and monitoring lung diseases. Micro-X is working on various technologies, most particularly its portable X-Ray, Rover.


Grant represents ‘huge vote of confidence’

Both companies’ chiefs hailed the news and said it was a big step.

“We are grateful to the Australian government for recognising this vision and awarding one of the largest medical grants in Australian history,” said EMVision CEO Ron Weinberger.

Mac Equity Partners‘ Hugh Pilgrim told Stockhead last Friday the grant was one of many positive things going for the company. Another was Dr Weinberger’s proven track record having grown Nanosonics (ASX:NAN) into a large cap stock.

“We feel that EMvision is going to be one of those Aussie success stories similar to Cochlear (ASX:COH)Resmed (ASX:RMD) and Nanosonics (ASX:NAN),” Pilgrim said.

“Ron is well known for taking Nanosonics from a micro cap to quite a large medtech company and we feel like he’s going to do a very similar job with EMvision.”

4D’s CEO Andreas Fouras welcomed the news as well.

“We’re thrilled with the huge vote of confidence afforded by the competitive assessment process as we aim to deliver safe and accurate lung health technology to those who need it,” he declared.


So these ASX health stocks won the grant; what happened to their shares?

EMvision shareholders welcomed the news, sending shares up over 20 per cent today.

The company is up over 500 per cent in two years.

Meanwhile 4D Medical shares did not move. This is because the company in a trading halt while it undertakes a capital raising.

Nevertheless 4D Medical has more than doubled since its IPO last August and remains one of the best performers from the IPO class of 2020.

EMvision (ASX:EMV) and 4D Medical (ASX:4DX) share price chart