Cardiex Accelerates CONNEQT Pulse Sales Amid Cost Cuts and New Digital Features
Cardiex reports strong early sales momentum for its CONNEQT Pulse device with approximately 3,000 units sold or contracted since its mid-January launch, supported by innovative app features and operational efficiencies. Despite regulatory delays in the US pharma sector and tariff challenges, the company is positioned for scalable growth and category leadership in preventative cardiovascular care.
- Approximately 3,000 CONNEQT Pulse units sold or under contract since January launch
- Launch of industry-first Cardiology Report and Apple Health integration boosts digital revenue potential
- Operational restructuring in Sydney cuts costs by 30%, improving profitability outlook
- US regulatory delays and tariffs impact pharma sales pipeline and supply chain costs
- TGA registration process underway for Australian market entry, with capital raising efforts ongoing
Strong Commercial Traction for CONNEQT Pulse
Cardiex has reported robust sales momentum for its CONNEQT Pulse device, achieving approximately 3,000 units sold, contracted, or under letters of intent within just 2.5 months following its mid-January 2025 launch. This early commercial success validates the company’s strategic focus on penetrating new market segments with its proprietary central arterial waveform technology.
Initial sales efforts concentrated on converting a US pre-sale waitlist and expanding direct-to-consumer channels, but the company is also seeing promising demand internationally, including significant contracts in Southeast Asia and the Americas. Post-quarter projections indicate an annualised sales run rate of $1.7 million in April, expected to rise to $4-5 million by June, equating to roughly 900 units sold monthly.
Innovative Digital Features Enhance User Engagement
Cardiex has strengthened its CONNEQT ecosystem with the launch of an industry-first Cardiology Report within its app, delivering personalized cardiovascular health assessments based on over two decades of clinical research. This feature translates complex arterial health data into actionable insights, empowering users and clinicians alike.
Additionally, integration with Apple Health on iPhone allows seamless syncing of cardiovascular biomarkers, enhancing the user experience and supporting the company’s vision of a connected, personalized healthcare platform. These digital innovations are expected to drive recurring revenue through premium app features and subscriptions.
Operational Efficiency and Cost Reductions
Cardiex has consolidated its R&D and technology development teams into a centralized Sydney hub, delivering a 30% reduction in its cost base and annualized savings of approximately $4.7 million. This streamlined operational model lowers the profitability threshold and positions the company for scalable growth as sales volumes increase.
The company’s internal forecasts suggest it is on track to achieve positive EBIT at around $12 million in revenue, including sales of approximately 12,000 CONNEQT Pulse units, marking a significant milestone for the business as it enters FY26.
Challenges from US Regulatory Delays and Tariffs
Despite strong commercial progress, Cardiex faces headwinds in its pharmaceutical and research sales pipeline due to regulatory uncertainty and funding cuts under the current US administration. Clinical trial approvals have been delayed or canceled, prompting a revision of near-term pharma revenue expectations from US$8 million to US$3-4 million.
Additionally, tariffs imposed under the Trump administration on medical devices and components present potential cost pressures. Cardiex is actively exploring supply chain diversification and logistics optimization to mitigate these risks. Importantly, current inventory is not subject to these tariffs, providing a buffer for near-term sales.
Progress Toward Australian Market Entry and Capital Strategy
Post-quarter, Cardiex finalized a market agreement to complete regulatory requirements with Australia’s Therapeutic Goods Administration (TGA), with plans to lodge for inclusion in the Australian Register of Therapeutic Goods (ARTG) in early May 2025. This will enable a swift rollout of the Pulse device and CONNEQT app in Australia.
On the capital front, lead shareholder C2 Ventures has fully funded its $250,000 commitment from the December 2024 capital raising and plans ongoing support. Discussions with investors in Australia and the US are underway to secure additional funding in Q4 to support manufacturing, marketing, and commercial expansion efforts aimed at reaching cash flow positive trading.
Looking Ahead
Cardiex’s combination of strong early sales, innovative digital offerings, operational efficiencies, and strategic market expansion positions it well to lead the emerging arterial health category. While regulatory and tariff challenges remain, the company’s proactive mitigation strategies and resilient pipeline provide a solid foundation for sustainable growth in FY26 and beyond.
Bottom Line?
Cardiex’s early sales and cost savings set the stage for growth, but regulatory and tariff risks warrant close investor attention.
Questions in the middle?
- How will ongoing US regulatory delays impact Cardiex’s pharma sales pipeline and revenue forecasts?
- What is the timeline and market potential for the CONNEQT Pulse launch in Australia following TGA approval?
- How effectively can Cardiex mitigate tariff-related cost pressures to maintain margin stability?
