Cyclopharm secures four regional wins as Technegas US rollout accelerates
Cyclopharm Limited (ASX: CYC) has announced commercial progress across four distinct US regions simultaneously, marking a significant step in its Technegas US expansion strategy. The company secured a purchase order from the National Institutes of Health (Mid-Atlantic), completed installation at St. Charles Health System (Pacific Northwest), executed a two-site agreement with UF Health (Central Florida), and secured a contract with Texas Health Presbyterian Hospital Dallas (North Texas). These developments represent both geographic diversification and channel diversification, spanning federal institutions, regional systems, and major metropolitan Independent Delivery Networks (IDNs).
The company now operates 46 revenue-generating US locations, with management targeting 250-300 installations by the second half of 2026. The simultaneous wins across multiple regions signal the commercial strategy is gaining traction beyond isolated deals, demonstrating institutional adoption at scale.
What is Technegas and why are US hospitals adopting it?
Technegas is a radioactive gas-like substance inhaled by patients for lung ventilation imaging. The technology uses Technetium-99m in a carbon crucible, heated to approximately 2,700°C, creating an ultra-fine dispersion that patients inhale. This allows imaging under gamma or single photon emission computed tomography (SPECT) cameras to evaluate functional ventilation imaging.
Historically used for diagnosing pulmonary embolism, Technegas is finding expanding clinical applications in COPD, asthma, pulmonary hypertension, lung cancer lobectomies, and lung volume reduction surgery. Growing clinical utility expands the addressable market beyond initial diagnostic indications, creating multiple growth vectors within existing hospital relationships.
Regional breakdown of the new agreements
| Region | Institution | Strategic Significance | Status |
|---|---|---|---|
| Mid-Atlantic | National Institutes of Health | Federal/research validation | Purchase order received |
| Pacific Northwest | St. Charles Health System | First regional entry | Two sites installed |
| Central Florida | UF Health | Cluster expansion | Two-site agreement executed |
| North Texas | Texas Health Presbyterian Hospital Dallas | Major metropolitan IDN | Contract secured |
Mid-Atlantic – Federal institutional validation
The NIH purchase order establishes Technegas within a leading US government research and clinical institution. This expands beyond IDNs into federal healthcare and research environments, complementing existing Veterans Administration and military hospital activity. Federal institutional validation provides a credibility benchmark that can accelerate adoption across other government and academic medical centres.
Pacific Northwest – First regional entry
St. Charles Health System installation marks Cyclopharm’s first clinical presence in the Pacific Northwest. Two sites in Central and Eastern Oregon were installed in early February, creating a clinical reference base for expansion to other regional IDNs. Entry into this network provides operational validation in a previously unserved geographic market.
Central Florida – Cluster-based expansion
The two-site agreement with UF Health builds on existing IDN presence in the region where the company already maintains installations within other major IDNs progressing further expansion. Regional density allows established clinical and operational validation supported by local commercial presence to accelerate multi-site adoption within affiliated networks.
North Texas – Major metropolitan IDN engagement
Texas Health Presbyterian Hospital Dallas contract secures position within Texas Health Resources, one of the largest non-profit health systems in the United States, serving the Dallas-Fort Worth metropolitan area. Large metropolitan IDNs provide high-volume procedural opportunities and potential for system-wide adoption following initial implementation.
How Cyclopharm’s recurring revenue model works
Each installed Technegas site generates recurring revenue through per-patient ventilation imaging procedures. As installations increase, procedure volumes drive ongoing consumables and service revenue, enhancing recurring revenue visibility and operating leverage. The installed base functions as an annuity-style revenue generator that compounds as more sites come online.
Cyclopharm’s US Technegas rollout progresses through three stages:
- Foundational installations to establish clinical validation
- Regional density to strengthen contracting leverage and IDN engagement
- System-wide expansion as institutional adoption accelerates
The combination of federal institutions, regional systems, and metropolitan IDNs expands the revenue base while accelerating national penetration. Dedicated Business Development Managers are driving shorter contracting cycles and improved conversion from clinical evaluation to signed multi-site agreements.
Management outlook and installation targets
James McBrayer, Managing Director and CEO
“Our Mid-Atlantic NIH engagement, Pacific Northwest entry, Central Florida expansion and North Texas contract demonstrate accelerating institutional adoption across multiple US regions. With 46 revenue-generating US locations currently installed, near-term installations being implemented and strong contracting momentum as demonstrated this week, we remain confident in achieving 250–300 installations by the second half of 2026. Shareholders can expect further material announcements as agreements are finalised and installations progress.”
Management reiterated quantified targets (250-300 installations by H2 2026), providing investors with a measurable benchmark to track execution. The company noted near-term installations being implemented and strong contracting momentum supporting this trajectory.
The acceleration now being observed follows the deliberate regional deployment of Cyclopharm’s US sales force, timed to align with increasing reimbursement clarity and growing clinical adoption. This has positioned the company to capitalise on accelerating institutional interest across federal, regional, and metropolitan healthcare networks.
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