Cyclopharm Limited reaffirms its ambitious target of 250–300 US Technegas installations by late 2026, driven by FDA approval, CMS reimbursement, and a growing pipeline of healthcare sites. The company reports record half-year revenue growth, signaling strong momentum in the expanding lung imaging market.
- Reaffirmed guidance of 250–300 US Technegas installations by H2 2026
- Record half-year revenue growth of 26%, driven by Technegas and third-party sales
- 40 US revenue-generating sites with 690 additional engaged locations in pipeline
- Full CMS reimbursement granted July 2024 accelerates US market adoption
- Beyond pulmonary embolism, AI-driven applications target a $1.1bn respiratory market
Cyclopharm’s US Expansion Gains Traction
Cyclopharm Limited, the Australian medical technology company behind Technegas, has delivered a robust update at the Bell Potter Healthcare Conference 2025, reaffirming its guidance to achieve between 250 and 300 installations of its lung ventilation imaging system across the US by the second half of 2026. This ambitious target is underpinned by the recent FDA approval and full reimbursement from the US Centers for Medicare and Medicaid Services (CMS) granted in July 2024, which together have unlocked significant commercial momentum.
Currently, Cyclopharm has 40 revenue-generating US sites, with an additional 41 installations progressing through contract review and a broader active pipeline engaging 690 primary locations linked to 240 affiliated sites. This expanding footprint reflects a disciplined, field-first sales approach and a growing national sales force focused on converting pipeline opportunities into installations.
Strong Financial Performance and Recurring Revenue Model
The company reported record half-year sales revenue of $15.42 million, a 26% increase over the prior year, driven by strong growth in both Technegas consumables and third-party distribution. Notably, US sales doubled in the last six months, reflecting accelerating adoption. Cyclopharm’s business model leverages a razor-razorblade approach, generating high-margin annuity revenue from per-patient consumables and annual technology fees, with gross margins expected above 80% in the US market.
With a modest operating cost base of approximately US$6.5 million annually for the US rollout, Cyclopharm is scaling efficiently while investing in regulatory, inventory, and field team expansion to support sustained growth.
Technegas, A Clinically Proven Standard with Expanding Applications
Technegas is a unique drug-device combination that has been the gold standard for lung ventilation imaging since its clinical introduction in 1986. It offers superior diagnostic accuracy, lower radiation exposure, and easier administration compared to traditional methods like CT pulmonary angiography (CTPA). The product is currently available in 66 countries, holding an 85% market share in nuclear medicine ventilation imaging outside the US.
Beyond its established role in diagnosing pulmonary embolism (PE), Technegas is poised for exponential growth through AI-driven applications targeting chronic respiratory diseases such as COPD, asthma, lung cancer, and occupational lung disease. These expanded indications could open an addressable market exceeding US$1.1 billion, supported by ongoing clinical trials and anticipated updated US clinical guidelines in early 2026.
Navigating Challenges and Looking Ahead
While the US rollout is progressing well, some installations remain on hold due to factors such as government funding volatility, hospital construction delays, and competing projects. Cyclopharm plans to revisit these sites in 2026. The company’s strong pipeline, combined with a growing network of key opinion leaders and strategic accounts, positions it well to accelerate adoption once these hurdles are resolved.
Overall, Cyclopharm’s presentation paints a picture of a company transitioning from a niche player to a transformative force in respiratory imaging, leveraging proprietary technology, regulatory milestones, and a scalable commercial model to capture significant market share in the world’s largest healthcare market.
Bottom Line?
Cyclopharm’s US expansion is gaining unstoppable momentum, but execution risks remain as it scales rapidly into a complex healthcare market.
Questions in the middle?
- How quickly will Cyclopharm convert its large US pipeline into revenue-generating installations?
- What impact will updated US clinical guidelines have on Technegas adoption beyond pulmonary embolism?
- Can Cyclopharm sustain high gross margins amid scaling and potential competitive pressures?