Cyclopharm (CYC) H1 2024 earnings summary

Executive summary

• Achieved a step change in Technegas demand after US reimbursement approval and TPT status, enabling broad industry uptake, first US commercial sales, and accelerating US expansion with contracts for up to 71 installations and a pipeline representing 832 potential sites.

• Completed $20m capital raising and $4m oversubscribed share purchase plan, boosting 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 widened to $7.51m from $2.90m pcp, reflecting US expansion investments and absence of prior period one-off gains.

• Technegas achieved first commercial revenues in the US, marking entry into the 65th country market.

Financial highlights

• H1 2024 revenue was $13.32m, down from $16.49m in the prior corresponding period, mainly due to lower third-party capital equipment sales timing.

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

• 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 to $4.33m.

• Net loss before tax was $7.48m, up from $2.66m in 1H2023.

Outlook and guidance

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

• US market opportunity estimated at $180m annually at full penetration, with broader indications potentially exceeding $900m per annum.

• Full-year third-party product revenues expected to rebound in 2H2024 to match FY2023.

• Continued strong demand anticipated in 64 established country markets.

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