Cyclopharm locks in 11-site Technegas deal with University Hospitals, Cleveland
Cyclopharm (ASX: CYC) has signed a system-wide agreement with University Hospitals (UH), Cleveland, Ohio, for the commercial installation of Technegas® across 11 clinical locations within the UH network. The deal marks a further step in the radiopharmaceutical company’s US expansion strategy.
What distinguishes the arrangement is its structure. Rather than a staged multi-site rollout, the agreement provides for immediate, system-wide deployment, with all 11 Technegas® installations scheduled over the next few weeks.
UH completed the required site preparation works at all installation locations ahead of signing. According to the company, this enabled deployment to commence without delay.
For investors, the significance lies in the recurring revenue model. Each installed site is expected to generate per-patient revenue once operational, signalling a near-term expansion of Cyclopharm’s US revenue base.
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Why the University Hospitals partnership carries weight
Partnering with an institution of UH’s scale adds a further top-tier academic health system to Cyclopharm’s growing US portfolio. UH’s credentials speak to its standing within the US healthcare sector.
- Founded in 1866, UH carries a 160-year legacy of clinical excellence, research and medical education.
- The system serves more than one million patients annually across northern Ohio, supported by a workforce of over 32,000 caregivers.
- It is anchored by University Hospitals Cleveland Medical Center, a 1,000-plus bed academic complex and the primary teaching hospital of Case Western Reserve University School of Medicine.
- UH Cleveland Medical Center has been named to US News & World Report’s Best Hospitals list for 27 consecutive years.
- The system is home to UH Seidman Cancer Center, part of the National Cancer Institute-designated Case Comprehensive Cancer Center, and UH Rainbow Babies & Children’s Hospital.
- In 2024, its researchers led more than 3,400 active clinical trials and published nearly 1,500 peer-reviewed articles.
Technegas receiving preferred agent status in US clinical guidelines, the first comprehensive lung imaging guidance update since 2012, has materially lowered the procurement barrier for hospital systems evaluating the technology, giving institutional buyers a multi-society endorsed rationale for system-wide commitment.
According to Cyclopharm, UH is expected to serve as an important national reference site for Technegas®, showcasing enterprise-scale adoption to peer institutions and supporting broader clinical uptake.
Cyclopharm’s broader US expansion has reached 55 revenue-generating installations as of late April 2026, with a contracted pipeline of 330 locations and management targeting 250-300 total US installations by the second half of the year.
What Technegas is and why functional lung imaging matters
Technegas® is a structured ultra-fine dispersion of radioactive-labelled carbon. It is produced using dried Technetium-99m in a carbon crucible, micro-furnaced for a few seconds at around 2,700°C.
The resulting gas-like substance is inhaled by the patient through a breathing apparatus. This allows multiple views and tomography imaging under a gamma or single photon emission computed tomography (SPECT) camera to evaluate functional lung ventilation.
In the United States, Technegas® is indicated for the visualisation of pulmonary ventilation and for the evaluation of pulmonary embolism when paired with perfusion imaging, in adults and paediatric patients aged 6 years and older.
Other applications referred to by the company, including chronic obstructive pulmonary disease (COPD), asthma, pulmonary hypertension and certain interventional lung procedures, are under investigation and are not approved indications. Readers should note the distinction between the approved US indication and uses still subject to clinical research.
Why does this matter for investors? Each imaging procedure represents a recurring, consumable-driven revenue event, linking clinical usage directly to the company’s revenue profile.
The recurring revenue engine behind the deal
The immediate, system-wide nature of the deployment reflects what Cyclopharm describes as its enterprise-wide adoption model, one of the key pillars of its US growth strategy.
According to the company, each site will, upon installation, generate recurring revenue from per-patient functional ventilation imaging procedures. Consumables and service revenue are expected to scale in line with procedure volume growth across the UH network.
No specific dollar figures, per-site revenue, or procedure volumes were disclosed in the announcement. The agreement establishes Cyclopharm’s presence across northern Ohio and extends its reach across the US Midwest, strengthening its portfolio of high-quality US reference sites.
| Deal Feature | Investor Impact |
|---|---|
| 11 sites, immediate deployment | Faster recurring revenue onset versus staged rollout |
| Enterprise-wide adoption | Validates key pillar of US growth strategy |
| Top-tier academic health system | National reference site for peer institutions |
| Consumables plus service model | Revenue scales with procedure volume |
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Management’s view and the road ahead
Cyclopharm’s Managing Director and CEO, James McBrayer, framed the agreement as a significant milestone for the company’s US rollout.
James McBrayer, Managing Director and CEO
“This is a landmark agreement for our US rollout. One of America’s great academic health systems, University Hospitals has a 160-year legacy of clinical excellence, research and teaching. To have a system of this calibre commit to Technegas® across 11 locations simultaneously speaks directly to the recognised clinical value that Technegas® delivers for patients and clinicians.”
McBrayer highlighted the immediacy of the deployment as a distinguishing feature. He noted that UH’s decision to install Technegas® system-wide over the next few weeks deepens the company’s recurring revenue base and reflects the confidence placed in the product at enterprise scale.
Looking further ahead, McBrayer said the opportunity extends well beyond the diagnosis of pulmonary embolism. He pointed to a growing body of clinical research and peer-reviewed publications examining Technegas® in other respiratory conditions and interventional lung procedures, though these remain under investigation and are not approved indications.
McBrayer also raised the platform angle. He said Technegas®’s distinctive characteristics, in particular its ultra-fine particle dispersion and uniform lung distribution, make it well-suited as a platform for the next generation of quantitative and AI-driven lung imaging.
“Partnering with a research institution of University Hospitals’ calibre positions Technegas® at the forefront of these developments,” said McBrayer.
For investors, the agreement combines a near-term recurring revenue catalyst with longer-term platform optionality that, if research progresses, could extend Technegas®’s clinical applications beyond its current approved indication.
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