Varex Imaging Corporation has agreed to manufacture and supply tubes containing Nano-X Imaging’s digital X-ray source for the company’s Nanox.Arc System.

Introduced in 2019, the digital X-ray source is based on a proprietary silicon MEMs semiconductor technology, to generate electrons without the use of heat as a power source, making its scanners more affordable than traditional radiography systems. It is the key component of Nanox.Arc, a stationary X-ray system that reconstructs 2D images into 3D tomographic visualizations using a novel, cold-cathode X-ray tube as its power source.

Through the agreement, Nano-X will use Varex X-ray tubes in a minimum percentage of all operating Nanox.Arc Systems that it deploys. It will pay Varex a revenue-sharing fee that will be based on the company’s pay-per-scan revenue from Nanox.Arc systems that are equipped with these tubes worldwide. The fee will be subject to a minimal annual amount per system.
“This agreement reflects our belief in the future importance of cold cathode technology,” said Sunny Sanyal, chief executive officer of Varex Imaging, in a statement.

Nano-X received FDA clearance for its single-source digital X-ray technology in April 2021 and for its multisource iteration in May 2023. It says its use of a cold-cathode power source reduces the cost of its scanner.

It expects it to potentially increase access to imaging for two-thirds of the world where it is lacking, as well as decrease waiting times and help detect serious or chronic illnesses more in early stages. It has installed the system in Nigeria, Morocco, and Ghana for demonstration and training purposes.

The Nano-X platform also includes teleradiology services, and the company plans to add AI technology to automate the entire imaging process, from scanning to analysis and interpretation by trained radiologists.

But its claims that its scanner is more affordable than others has come under scrutiny in the last few years, with reports accusing it of failing to produce any evidence comparing Nanox.Arc to conventional CT and X-ray systems and fabricating distribution agreements with fake customers.

This has made it the subject of class action lawsuits, including a recent one filed by the Securities and Exchange Commission over allegations that the company lied to investors about how much it would cost to mass-produce Nanox.ARC scanners. Nano-X and its founder Ran Poliakine settled these allegations the same day the suit was filed with a payment of $1.1 million.

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