How Resonance Health’s $13.8M Pharma Contract Fuels Its Clinical Trials Expansion

• 29% revenue growth to $11.07 million in FY25
• Net loss of $1.73 million after prior year profit
• Acquisition and expansion of TrialsWest clinical trial sites
• Secured $13.8 million CRO contract with global pharma
• Commercial pilot launched for MRI Liver Fibrosis integration software

Financial Performance and Strategic Growth

Resonance Health Limited (ASX – RHT) has delivered a mixed financial report for the year ended 30 June 2025, with revenues climbing 29% to $11.07 million, driven by strong demand in both diagnostic and clinical trial services. However, the company recorded a net loss of $1.73 million, reversing a modest profit in the prior year. This loss reflects continued investment in research and development, strategic acquisitions, and operational expansion.

The company’s cash receipts surged 72% year-on-year to $14 million, underpinning positive operating cash flow of $1.25 million and a year-end cash balance of $3 million. Resonance Health also carries $2.85 million in secured debt, primarily linked to the acquisition of TrialsWest Pty Ltd.

Expanding Clinical Trial Footprint

A key highlight for FY25 was the acquisition and rapid integration of TrialsWest, a Perth-based clinical trials site network. TrialsWest expanded from one to three sites across Western Australia, including new locations in Osborne Park and Mandurah. This expansion contributed positively to group profitability within its first year under Resonance Health’s ownership.

Complementing this growth, Resonance Clinical secured a landmark $13.8 million contract to provide contract research organisation (CRO) services to a major global pharmaceutical company. Since August 2023, the clinical trials division has won over $20 million in contracts, establishing Resonance Health as a trusted partner in the global biopharma ecosystem.

Innovation in Medical Imaging Software

On the technology front, Resonance Health continues to build on its reputation in software as a medical device (SaMD). The company is piloting its Bridge Project, designed to integrate MRI data more seamlessly into hospital systems, enhancing workflow efficiency for radiologists and clinicians. Additionally, the Extended Proof of Concept study for its MRI Liver Fibrosis tool is underway, aiming to provide a non-invasive biomarker for liver disease progression, a critical unmet need highlighted by regulators and advocacy groups.

These innovations are expected to open new commercial pathways, particularly in supporting pharmaceutical companies developing treatments for chronic liver diseases such as Non-Alcoholic Fatty Liver Disease (NAFLD).

Governance and Outlook

Resonance Health has strengthened its governance and investor engagement through the launch of the InvestorHub platform, enhancing transparency and communication. The Board and management emphasize a disciplined approach to growth, balancing investment in R&D and clinical trial expansion with operational execution.

Looking ahead, the company plans to leverage the full-year contribution from its expanded TrialsWest sites, complete the liver fibrosis tool’s proof of concept, and continue to grow its clinical trial pipeline and SaMD offerings. While the loss underscores the costs of transformation, the strategic direction aims to position Resonance Health for scalable and sustainable growth.

Bottom Line?

Resonance Health’s FY25 results mark a pivotal investment phase, setting the stage for growth but underscoring the need for successful commercialisation and contract execution.

Questions in the middle?

• Will the MRI Liver Fibrosis tool successfully complete its proof of concept and gain regulatory approval?
• How will the expanded TrialsWest footprint impact profitability and contract acquisition in FY26?
• What risks does the company face from its reliance on a limited number of large clinical trial customers?