Cyclopharm Bags A$20M To Expand Lung Imaging Technology

Cyclopharm Ltd (ASX: CYC) is raising A$20 million via an institutional placement to sophisticated, professional and other institutional investors.

The placement is at A$1.42 per share, representing a 13.9% discount to the last traded price of A$1.65 on 23 May 2024.

Cyclopharm will also offer eligible shareholders a share purchase plan (SPP) to raise up to A$2 million at A$1.42 per share.

Expansion of Technegas

Technegas is an innovative and broad-spectrum diagnostic lung imaging technology for visualisation of pulmonary ventilation and lung function.

Fund raised will primarily be used to finance the activities associated with the expansion and growth of Technegas in the USA.

In addition, these funds will support other strategic priorities, including expanding the use of Technegas beyond the pulmonary embolism market.

FDA approved

Cyclopharm recently rolled out Technegas in the US following Federal Drug Administration (FDA) approval last year.

Read: Cyclopharm Ltd Images First Patients In Missouri & California After FDA Approval

The first clinical patients imaged with Technegas were at two clinical sites located in St Louis, Missouri, and Stanford, California.

New contract wins

With a focus on initial roll-out to high-volume US medical institutions, 5 Technegas systems have been installed and are currently bringing in revenue.

A further 7 sites are under contract with installations scheduled.

Work continues to convert demand into executed contracts through various approval phases at medical institutions across the USA.

Market size

The company estimates the market for Technegas used in Pulmonary Embolism to be worth about US$180 million annually.

 

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