Cyclopharm’s $17M Loss Reflects High-Stakes US Expansion and Asset Impairment

Cyclopharm’s Financial Leap

Cyclopharm Limited has delivered a standout financial performance for the year ended 31 December 2025, posting record operating revenue of $32.3 million, a 17% increase over the prior year. This growth was underpinned by strong sales momentum in its flagship Technegas product, particularly in the United States, where revenue surged 226% to $2.7 million, marking the US as Cyclopharm’s largest individual market for the first time.

The company’s third-party distribution business also contributed significantly, with revenues climbing 26% to $15.6 million, driven by robust consumables and service sales. Despite these gains, Cyclopharm recorded a net loss after tax of $17.2 million, reflecting deliberate investments to accelerate its US market rollout and expand its commercial footprint globally.

US Market: The Growth Engine

The US market has emerged as a pivotal growth driver following Medicare reimbursement approval for Technegas. Cyclopharm’s strategic approach involves retaining ownership of Technegas generators while generating revenue primarily through consumables and service fees. With over 150 generators already landed in the US and 46 revenue-generating sites as of early 2026, the company is on track to reach its target of 250–300 installations in the second half of 2026.

Notable milestones include agreements with prestigious institutions such as Stanford Medicine Children’s Health and the National Institutes of Health, underscoring growing clinical acceptance. The recent inclusion of Technegas as a preferred ventilation agent in updated US nuclear medicine guidelines further validates its clinical value and supports broader adoption.

Beyond Pulmonary Embolism: Expanding Horizons

Cyclopharm is actively pursuing its 'Beyond PE' strategy, leveraging Technegas for a wider range of respiratory conditions including COPD, asthma, long COVID, and lung cancer. Multiple clinical trials are underway globally, including the French PRONOSPECT study and new initiatives in Canada and Australia. The US market’s broad FDA approval for pulmonary ventilation imaging is expected to accelerate these efforts, potentially unlocking a market opportunity exceeding US$900 million annually.

Capital and Corporate Developments

To support its ambitious growth plans, Cyclopharm completed a $14 million capital raise in early 2026, supplemented by a forthcoming Share Purchase Plan. These funds will underpin US expansion, next-generation product development, manufacturing capacity increases, and ongoing clinical research.

On the governance front, Chairman David Heaney announced his intention to retire at the May 2026 AGM, prompting a formal succession process. Meanwhile, the appointment of Thomas Lukas as US Vice President of Sales signals a strengthened leadership focus on scaling the US commercial operation.

Challenges and Strategic Focus

Cyclopharm also recorded a $3.3 million impairment of its Ultralute asset, reflecting regulatory delays but maintaining commercial viability and future development options. The company continues to defend its intellectual property vigorously through ongoing litigation in Australia and Germany, with outcomes expected in the near term.

Overall, Cyclopharm’s 2025 results highlight a company in transition, balancing near-term investment losses with a clear pathway to revenue growth and market leadership in the US and beyond.