Cyclopharm accelerates US Technegas expansion with $16 million capital raising
Cyclopharm Limited (ASX: CYC) is undertaking a capital raising of up to $16 million to accelerate the commercial rollout of its Technegas lung imaging technology across the United States. The raise comprises a $14 million institutional placement and a $2 million Share Purchase Plan (SPP) for eligible Australian and New Zealand shareholders.
The capital will primarily fund the expansion of Cyclopharm’s US operations in the world’s largest nuclear medicine market. The US represents a ~US$180 million total addressable market for pulmonary embolism (PE) diagnosis alone, with exponential growth potential through “Beyond PE” applications in chronic respiratory disease management.
New shares are being offered at $0.95 per share, representing an 18.8% discount to the last closing price of $1.17 and a 10.2% discount to the 30-day volume-weighted average price.
What is Technegas and why does it matter?
Technegas is an ultrafine carbon particle aerosol inhaled by patients to produce functional images of lung ventilation using nuclear medicine imaging. The technology provides direct physiological measurement of where oxygen is distributed within the lungs, enabling clinicians to diagnose pulmonary embolism and other respiratory conditions.
Since its clinical introduction in 1986, Technegas has been used in over 5 million patient procedures globally. The product is now approved and generating revenue in 67 countries with direct distribution in 17 markets.
The company operates a “razor-razorblade” business model. Technegas generators are placed at hospital sites, creating recurring revenue from single-use consumables required for each patient scan. This model delivers annuity-like cash flows as installations scale.
Technegas received FDA approval in the US in October 2023. Full Medicare reimbursement was granted from July 2024, removing a critical barrier to widespread adoption and ensuring hospitals can be fully compensated for using the technology.
US commercial rollout gaining momentum
Cyclopharm has established 44 revenue-generating US sites with an additional 64 sites progressing through contract review. The overall active pipeline covers 792 additional locations directly engaged, linked to a further 296 affiliated locations.
The company deployed its national US sales force in October 2025, focused on pipeline expansion and deal conversion. Management has reaffirmed guidance for 250-300 total US Technegas installations during the second half of CY2026.
The US has become Cyclopharm’s #1 country for Technegas consumable revenue globally, validating the commercial model and highlighting the pace of market adoption.
| Pipeline Stage | Primary Sites | Affiliated Sites | Total Potential Locations |
|---|---|---|---|
| Revenue Generating | 44 | – | 44 |
| Contract Review (Committed) | 19 | 34 | 53 |
| Committee Review | 87 | 95 | 182 |
| Proposal Stage | 554 | 50 | 604 |
957 primary sites have been directly engaged, representing 28.5% of the total US lung imaging market of 5,139 locations. This extensive pipeline positions Cyclopharm to execute its installation targets and capture market share from competing imaging modalities.
Updated US clinical guidelines expected to accelerate adoption
New draft US clinical guidelines from the Society of Nuclear Medicine and Molecular Imaging (SNMMI) were released for consultation in January 2026. These guidelines name Technegas as a preferred ventilation agent, providing formal clinical endorsement that should accelerate hospital adoption decisions.
An independent survey found Technegas holds 85% market share in established markets outside the US. The US market has historically relied on older agents (Xenon-133, DTPA) due to prior regulatory barriers. The combination of FDA approval, Medicare reimbursement, and updated clinical guidelines positions Technegas to displace legacy technologies and become the standard of care.
Record CY2025 financial performance
Cyclopharm reported record global sales revenue of $32.3 million, up 17% from $27.6 million in the prior year. Technegas global sales revenue reached $16.7 million, up 10%, while US Technegas sales surged to $2.7 million, up 226% from $0.83 million in the prior year.
Third-party distribution revenue contributed $15.6 million, up 26%, driven by strong growth in the consumables and service segment. This division leverages Cyclopharm’s direct market access and regulatory footprint across 17 countries.
The company reported a net loss before tax (underlying) of between $17.0-18.0 million versus $13.1 million in the prior year. This reflects investment in the US field team, Beyond PE clinical trials, warehouse expansion, and legal costs.
Cash reserves stood at $6.6 million at 31 December 2025. The company has over 150 Technegas generators landed in the US awaiting placement at hospital sites. Importantly, the underlying business (ex-USA) is cash positive, meaning US losses represent investment in growth rather than structural deficits.
Investment Significance
The 226% growth in US sales validates the commercial model and demonstrates market demand. With the majority of the installed base still ahead, recurring consumable revenue is positioned to scale rapidly.
Use of proceeds and next steps
The $16 million capital raising will be allocated across five key areas. $12.5 million (78% of total proceeds) will accelerate the US commercial rollout, including scaling the salesforce, expanding clinician education and training programmes, and supporting market access initiatives.
$1.1 million will advance Beyond PE growth initiatives, progressing clinical trials in COPD, asthma, lung cancer, and other respiratory applications. $1.0 million is earmarked for development of the next-generation Technegas system, incorporating new intellectual property and patents.
$0.6 million will fund Sydney warehouse expansion to boost manufacturing capacity and storage space. The remaining $0.8 million covers transaction costs.
The SPP will allow eligible Australian and New Zealand shareholders to participate at the same $0.95 price, with applications up to $30,000 per holder. The SPP record date is 3 February 2026 and closes 5 March 2026.
Beyond PE applications offer exponential upside
Technegas imaging, combined with AI analysis, is being developed for larger respiratory markets beyond pulmonary embolism. Target applications include COPD management, asthma phenotyping, lung cancer radiation therapy planning, and lung transplant assessment.
The global market size for these expanded applications exceeds US$1.1 billion. Clinical trials are underway, with proceeds from this raising supporting further development.
PE diagnosis represents Cyclopharm’s entry point into US nuclear medicine departments. Beyond PE applications leverage the same installed base to deliver exponential revenue growth without proportional capital expenditure. As hospitals adopt Technegas for PE imaging, they gain the infrastructure to deploy the technology across multiple respiratory indications, multiplying the revenue potential per installation.
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