Cyclopharm (ASX:CYC) Limited , a nuclear medicine company best known for its Technegas lung imaging agent, has released a third-quarter 2026 update. The unaudited figures show growing United States sales and a lower rate of cash burn, alongside a pipeline the company describes in its own terms and a long list of conditions that determine how quickly that pipeline converts.

Revenue and margins

Group revenue for the nine months to 30 September 2026 was A$25.9m, up 13.7 per cent from A$22.8m a year earlier. The group gross margin was 56.3 per cent, up from 53.5 per cent, per its first-half report. In the United States, third-quarter revenue was A$1.62m, up 124 per cent on the third quarter of 2025 and 45 per cent on the second quarter of 2026. US revenue for the nine months was A$3.8m, already 40 per cent above full-year 2025 revenue of A$2.7m.

Patient consumables made up 76 per cent of US sales in the third quarter, according to the update, which also cites 80 per cent elsewhere in the presentation. The company estimates a margin of about 95 per cent on those consumables, describing a model in which installed systems generate recurring consumable sales. Cyclopharm manufactures every component itself.

Installed base and pipeline

The US installed base of revenue-generating systems was 84 at 30 September 2026, up from 46 at 31 March 2026. About 110 systems were held in US inventory at quarter end, awaiting deployment. The pipeline figures are company data: 186 primary sites are in committee review and 105 are signed or in contract review. Conversion depends on hospital committee and contract decisions, and the company also targets replacement of ageing xenon systems, which it estimates as a market of about US$90m a year.

Regulatory and clinical context

Technegas received US Food and Drug Administration approval in late 2023 as a drug-device combination under NDA 022335, for visualisation of pulmonary ventilation and, when paired with perfusion imaging, evaluation of pulmonary embolism in adults and children aged six and over. The company describes uses such as COPD, asthma, chronic thromboembolic pulmonary hypertension and transplant as applications within the existing label rather than separate approved indications.

The update also points to joint US, European and Australasian guidelines issued on 29 July 2026 that, the company says, favour Technegas where available and direct a move to SPECT/CT, and to the Chinese Thoracic Society naming Technegas its preferred radiopharmaceutical in October 2026. Technegas is used in 67 countries, with more than five million procedures and, by the company's estimate, more than 85 per cent share in established markets outside the US.

Cash and funding

Cash at 30 September 2026 was A$9.6m. Average monthly net cash burn fell to A$0.9m in the third quarter, from A$1.3m in the first half of 2026 and A$1.8m in the second half of 2025. The company noted that receipts can be lumpy from month to month, so a single quarter's burn is not necessarily a trend.

Risks and milestones

Most of the financial and pipeline figures are unaudited management numbers, and market sizes, unit economics and ex-US share are company estimates. US revenue is seasonal and weighted towards the second and fourth quarters because of hospital budget year-ends, with fourth-quarter capital decisions due ahead of 31 December. Reimbursement benefits, including a transitional pass-through payment for Technegas, are expected from mid-2027 and vary by payer.

The reported US numbers are small in absolute terms, and the company itself notes the seasonal pattern, so the trajectory of installations and consumable use over several quarters will matter more than any single period.

Next steps include converting the sites in committee and contract review, deploying the systems in US inventory and capturing fourth-quarter budget spending.