Cyclopharm Locks in 11-Site US Hospital Deal With Top 20 Academic Health System
Cyclopharm secures landmark 11-site US hospital network deal
Cyclopharm Limited (ASX: CYC) has secured a multi-site agreement with the University of Pennsylvania Health System (UPHS), covering 11 clinical locations across Pennsylvania and New Jersey. The agreement includes two immediate Technegas installations at flagship locations, with contracted rollout across a further nine sites in the UPHS network over time.
The Hospital of the University of Pennsylvania is ranked a top 20 hospital in the US and the leading hospital in Pennsylvania according to US News and World Report 2025-2026. As a premier academic health system, this represents a major lighthouse win in the Philadelphia market and positions Cyclopharm for broader expansion across the mid-Atlantic and Northeast regions.
The agreement is structured with an initial term of three years across the 11 sites. Two installations will proceed immediately at the Hospital of the University of Pennsylvania and the Perelman Center for Advanced Medicine, both high patient volume centres providing immediate revenue generation. The remaining nine contracted sites will be installed over time, with potential for expansion beyond the contracted 11 locations at additional sites affiliated with UPHS.
This multi-site integrated delivery network (IDN) agreement represents a scalable commercial approach. Single contracts covering multiple sites demonstrate the efficiency of enterprise selling versus individual hospital sales, with 11 network sites secured under a single agreement creating regional density in the Mid-Atlantic corridor.
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Understanding Technegas and the recurring revenue model
Technegas is a structured ultra-fine dispersion of radioactive labelled carbon, produced using dried Technetium-99m in a carbon crucible, micro-furnaced for a few seconds at approximately 2,700°C. The resultant gas-like substance is inhaled by the patient via a breathing apparatus, allowing multiple views and tomography imaging under a gamma or single photon emission computed tomography (SPECT) camera for evaluating functional lung ventilation imaging.
Cyclopharm’s commercial model generates revenue through three distinct streams. Each Technegas installation creates ongoing revenue from installation fees, annual service and support fees, and recurring consumables revenue generated per patient procedure.
| Revenue Stream | Description | Frequency |
|---|---|---|
| Installation Fees | One-time equipment setup and deployment | Per site installation |
| Support Fees | Annual service and maintenance contracts | Annual recurring |
| Consumables | Per-patient procedure usage of Technegas | Per procedure recurring |
The recurring consumables revenue per procedure creates compounding returns as patient volumes grow across 11 contracted sites. Annual support fees provide a baseline predictable income stream, while the per-patient consumables model scales directly with clinical utilisation at each location.
Multi-site agreements of this nature amplify revenue potential. As each of the 11 UPHS sites ramps utilisation, the cumulative consumables revenue across the network compounds, while fixed support costs per site remain relatively stable, improving operating leverage over time.
Strategic value of the UPHS partnership
UPHS is a nationally recognised academic health system and a key opinion leader in clinical research and advanced imaging. Establishing Technegas across this network provides a major reference centre cluster within a high-profile academic system, creating academic credibility that supports broader commercial conversations with other integrated delivery networks.
The flagship presence in the Philadelphia market supports broader affiliated regional expansion. Academic health system partnerships validate technology and influence adoption at other institutions, with UPHS serving as a reference point for subsequent IDN negotiations across the mid-Atlantic and Northeast regions.
Increased clinical utilisation across multiple sites is expected to accelerate the adoption of Beyond Pulmonary Embolism Applications (Beyond PE). These applications expand Technegas use beyond traditional pulmonary embolism diagnosis to include:
- COPD (Chronic Obstructive Pulmonary Disease)
- Asthma
- Interstitial lung disease
- Oncology-related pulmonary assessment
Beyond PE expansion represents total addressable market growth beyond traditional pulmonary embolism diagnosis. As clinical experience grows across the 11 UPHS sites, utilisation in these additional disease states could drive procedure volumes significantly higher than PE diagnosis alone.
The agreement also provides potential for expansion beyond the contracted 11 locations at additional sites affiliated with UPHS. This expansion pathway creates a runway for deeper institutional penetration over time without requiring new enterprise sales cycles.
CEO commentary on US commercial momentum
James McBrayer, Managing Director and CEO, positioned the agreement as central to Cyclopharm’s scalable US expansion strategy.
James McBrayer, Managing Director and CEO
“Securing an 11-site agreement with the University of Pennsylvania Health System represents a significant milestone in our US expansion. Multi-site agreements of this nature are central to driving scalable, recurring revenue growth and improving operating leverage as utilisation increases. This is a high-quality academic health system with national influence across both clinical practice and research. Establishing Technegas across multiple UPHS locations provides immediate scale and positions us for deeper institutional penetration over time.”
McBrayer’s emphasis on “operating leverage” signals margin expansion potential as the US installed base grows. Fixed sales and support costs spread across 11 sites within a single health system create improved unit economics compared to individual hospital contracts.
The reference to “national influence across both clinical practice and research” highlights the strategic value beyond immediate revenue. Academic health systems like UPHS publish clinical research, present at medical conferences, and influence practice patterns at other institutions, creating downstream commercial leverage for future IDN expansion.
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What this means for Cyclopharm’s US expansion
The UPHS agreement demonstrates the accelerating execution of Cyclopharm’s US strategy, which is focused on three core pillars:
- Establishing leading reference sites at nationally recognised academic institutions
- Building regional density through multi-site contracts within geographic markets
- Expanding across large integrated delivery networks via enterprise agreements
The multi-site nature of this agreement is another example of Cyclopharm’s strategy to progress from initial installations to system-wide adoption within large US healthcare networks and IDNs. UPHS serves as a template for future IDN expansion, with the company’s stated approach of securing lighthouse wins at prestigious academic systems to create commercial leverage for subsequent negotiations.
Philadelphia market presence acts as a gateway to broader mid-Atlantic and Northeast penetration. Regional density building reduces sales and support costs per site over time, with a single commercial relationship covering 11 locations requiring fewer resources than 11 independent hospital contracts.
The three-year initial contract term provides revenue visibility across the 11 sites, with the recurring revenue profile from annual support fees and per-patient consumables creating a predictable baseline that compounds as utilisation increases. Two installations proceeding immediately at high patient volume centres provide near-term revenue initiation, with the remaining nine contracted sites creating a pipeline of future installations within an already secured customer relationship.
Enhanced commercial leverage with other IDN expansion in the US stems from the reference value of UPHS. Academic health systems with national influence create validation that supports conversations with other large integrated delivery networks evaluating Technegas adoption.
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