Cyclopharm (CYC) H1 2024 earnings summary

Executive summary

• Achieved a step change in Technegas demand after US reimbursement approval, enabling broad industry uptake and accelerating US expansion.

• First commercial US sales recorded, with 6 installations and contracts for up to 71 systems; pipeline represents 832 potential installations.

• Completed $20m capital raising and $4m oversubscribed share purchase plan, strengthening cash reserves to $27.56m at 30 June 2024.

• Technegas validated as the agent of choice in global guidelines and clinical practice, with expansion into new disease indications underway.

• Net loss after tax increased to $7.51m, reflecting US expansion investments and absence of prior period one-off gains.

Financial highlights

• H1 2024 revenue was $13.32m, down from $16.49m in H1 2023, mainly due to lower third-party equipment sales.

• Technegas sales were steady at $7.46m, excluding one-off gains in the prior period.

• Third-party distribution revenue declined 33.8% to $4.81m, mainly due to timing of equipment sales.

• Consumable and service revenue increased 4% year-over-year.

• Cash and cash equivalents at 30 June 2024: $27.56m.

Outlook and guidance

• Targeting 300 US Technegas installations by December 2025, with ongoing recurring revenues from consumables.

• US market entry expected to quadruple the size of the PE business and drive expansion into CTPA and chronic respiratory disease markets.

• Full-year third-party product revenue expected to rebound in 2H2024, matching 2023 levels.

• Beyond PE strategy supported by multiple clinical trials in asthma, COPD, lung cancer, and other indications.

• Underlying ex-USA business remains cash positive, supporting further growth.