Shares in Cyclopharm Ltd (ASX: CYC) are down almost 50% over the past 12 months, but according to the analysts at Bell Potter, now could be a great time to buy in.
Bell Potter has a buy recommendation on the shares and a bullish price target, which I'll get to shortly.
First, let's have a look at the company's recently released first-half results.
Image source: Getty Images
US market primed for growth
Cyclopharm's flagship product is Technegas, which is a broad-spectrum diagnostic lung imaging technology for the visualisation of pulmonary ventilation and lung function.
The company said Technegas was now available in 67 countries, with more than five million patient procedures to date.
In the first half of 2026, Cyclopharm generated revenue of $17.5 million, up 14% on the same period last year, while revenue growth in the US jumped 74% to $2.1 million.
The company had $12.2 million in cash at the end of June, and posted a net loss of $8.8 million, compared with $7.7 million for the same period last year.
The company explained:
The movement reflects three factors: continued investment in US commercial operations; a near-doubling of research and development expenditure to $0.57 million as we advance our Beyond PE clinical programs; and the absence of the $1.1 million share of joint venture profit recorded in the pcp following the divestment of the non-core Cyclotek interest. Encouragingly, gross margin improved from 53.5% to 56.3%, reflecting the growing weighting of higher-margin Technegas revenue, and particularly US revenue, in the sales mix.
In terms of the market opportunity, Cyclopharm estimates the US market could be worth US$180 million.
Managing Director James McBrayer said:
The US is the world's largest healthcare market and represents a potential US$180 million annual revenue opportunity for Cyclopharm in the diagnosis and management of Pulmonary Embolism alone. That potential is not speculative; it is built on the same adoption curve that has played out in each of our established markets, where Technegas commands an 85% or greater share of nuclear medicine ventilation imaging. Applying that experience, the Company sees its primary US market as approximately 2,000-site addressable market out of the 5,139 US sites performing nuclear medicine lung imaging, per CMS data. With 70 sites generating revenue as at 30 June 2026, we have only just started.
ASX biotech shares looking cheap
Bell Potter said in its note to clients that the growth was encouraging and noted that half of the top 20 hospitals in the US had now adopted Technegas.
The broker has a $1 price target on Cyclopharm shares compared to 50.5 cents currently.
The company is valued at $63.5 million.
