4D Medical pursues $24 million court claim against rival Cyclopharm

Two of the ASX’s hottest biotechs are engaged in a behind-the-scenes court battle linked to competition among the pair to win customers in the lucrative US market for innovative new lung disease diagnostic technologies.

The dispute escalated on October 3 when $1.1 billion ASX lung imaging company 4D Medical filed a claim for $24 million in damages against Cyclopharm in the Victorian Supreme Court.

The claim alleges Cyclopharm’s chief executive James McBrayer told an online seminar in March 2025 that he believed 4D Medical was “contravening” the Australian Consumer Law, Corporations Act, and Therapeutic Goods Act for unspecified reasons.

In March, 2025, Cyclopharm wanted to post an announcement to the Australian Securities Exchange’s platform that would have made negative allegations against 4D Medical, according to 4D Medical’s lawsuit. The ASX refused to release the announcement on unspecified grounds.

Both Cyclopharm and 4D Medical were asked for comment on the dispute, but did not respond at the time of publication.

Lung imaging battle

The two biotechs are locked in competition in the US with emerging products. 4D Medical has a lung imaging product named CT VQ, which allows clinicians to assess lung function without the need for radioactive material inhaled by the patient.

However, Cyclopharm’s Technegas product also competes in the same lung disease diagnosis market in the US, with the Sydney-based biotech booking $1.24 million in US sales over the six months to June 30 after it gained regulatory approval to sell its product from the US healthcare regulator the Food and Drug Administration.

4D Medical is seeking financial compensation from Cyclopharm on the basis its campaign of negative public announcements pushed its share price lower and cost it an equivalent amount in future contract obligations owed to 4D Medical shareholder Pro Medicus.

Shares in 4D Medical have surged 370 per cent to a $1.1 billion valuation in 2025 as investors cheered a string of positive announcements including the decision of $31 billion medtech darling Pro Medicus to invest up to $10 million in the lung imaging business when shares fetched just 24 cents on July 31.

On Tuesday, 4D shares closed at $2.26, up nearly 10-fold over the two-month period since Pro Medicus invested.

Shares in Cyclopharm have swung wildly and are down 54 per cent over the past year to close at 79 cents on Tuesday.