Cyclopharm’s US Growth Fuels Record Half-Year Revenue of $17.5 Million

US Market Emerges as Growth Powerhouse

Cyclopharm Limited (ASX:CYC) has delivered its fifth consecutive record half-year, posting $17.5 million in revenue for the six months ended 30 June 2026, a 14% increase on the prior corresponding period. The standout driver: a 74% surge in US Technegas® revenue, which doubled the number of revenue-generating primary sites from 35 to 70 within a year, and further to 83 by mid-August. This expansion fuels a recurring revenue stream anchored by consumables with gross margins near 95%, underpinning a scalable annuity model.

The US now accounts for the fastest-growing segment, with the company estimating a $180 million annual opportunity in pulmonary embolism (PE) diagnosis alone. Cyclopharm targets approximately 2,000 primary US sites out of 5,139 nuclear medicine lung imaging locations, with 1,684 sites actively engaged in the pipeline. Notably, 54% of revenue-generating US sites are expansion units within existing customers, and 82% are part of multi-site customer groupings, highlighting deepening clinical adoption and network effects.

Clinical Guidelines Provide a Major Tailwind

A pivotal catalyst arrived post-period with the joint publication on 29 July 2026 of updated US lung ventilation imaging guidelines by SNMMI, EANM, ACNM, and ANZSNM. These are the first US updates in 14 years and explicitly name Technegas® as “generally preferred when available,” a rare brand-specific endorsement that breaks from typical generic guideline language. The guidelines also promote three-dimensional SPECT and SPECT/CT imaging, favouring Technegas®’s superior functional lung imaging capabilities and highlighting its significantly lower radiation dose, up to 70 times less breast radiation than CT pulmonary angiography for vulnerable patients.

This endorsement validates Cyclopharm’s Beyond PE strategy, which leverages Technegas®’s functional imaging to address chronic respiratory diseases such as COPD and asthma, as well as pre- and post-operative lung function assessment. These applications fall within Technegas®’s existing broad USFDA approval, enabling expansion without regulatory delays or costs. The company is advancing multiple clinical programs, including the PRONOSPECT (France), ESSA (Australia), PAXT (Canada), and Woolcock Institute trials, many incorporating AI-assisted image analysis to enhance diagnostic precision.

Expanding Footprint in Elite US Institutions

Cyclopharm’s US installed base now includes marquee federal and academic sites such as the National Institutes of Health, Walter Reed National Military Medical Center, Northwestern Memorial Hospital, and Penn Medicine. The company’s penetration extends to nearly half of the US News & World Report Honor Roll hospitals and 13.5% of the 200 largest US hospitals by staffed beds. The federal footprint has grown to nine sites across Veterans Administration, military hospitals, and NIH, reflecting robust endorsement in the most rigorous procurement environments.

Recent contract wins include a landmark 11-site agreement with University Hospitals Cleveland, all sites now revenue-generating, and ongoing expansion within established multi-site networks. The US sales model’s combination of upfront installation fees, annual technology access fees, and high-margin consumables creates a compelling economics of scale, with recurring revenue expected to drive margin expansion and reduce net cash burn as the installed base grows.

Financials Reflect Investment Amid Strengthening Margins

While revenue grew strongly, Cyclopharm’s net loss after tax widened to $8.8 million from $7.7 million a year earlier, driven by sustained investment in US commercial operations, a near doubling of R&D spend to $0.57 million advancing Beyond PE programs, and the absence of $1.1 million joint venture profit following divestment of Cyclotek. Encouragingly, gross margin improved from 53.5% to 56.3%, reflecting a richer Technegas® sales mix and higher-margin US revenues.

The company raised $13.5 million net via institutional placement and a Share Purchase Plan during the period, ending June with $12.2 million in cash. Management believes Cyclopharm has passed peak cash burn, expecting monthly net cash consumption to decline as recurring consumable revenue from new US installations scales. Outside the US, Technegas® revenue from 66 established markets rose 13% to $7.3 million, while third-party distribution grew 4% to $8.1 million, providing a resilient international base.

What to Watch Next

Cyclopharm’s US expansion is accelerating with 83 revenue-generating primary sites and a broad engaged pipeline, now buoyed by clinical guideline endorsement that could unlock faster hospital adoption and utilisation. The company’s ability to convert pipeline contracts into revenue and expand within existing customer networks will be crucial to sustaining growth and improving profitability. Meanwhile, clinical trial results from Beyond PE programs and AI collaborations may open new multi-billion-dollar markets.

Investors should monitor quarterly pipeline updates, US government contract expansions, and the commercial impact of the newly published guidelines. The balance between ongoing investment and margin expansion will determine the pace at which Cyclopharm transitions from growth-stage losses to sustainable profitability.