Why Cyclopharm (ASX: CYC) is a whopping 21% higher today!

Cyclopharm (ASX: CYC), a radiopharmaceutical company responsible for the lung ventilation imaging product Technegas, has risen over 15% today in light of a revenue update. The company has left investors disappointed over the delays in obtaining FDA approval for Technegas, hence its decline in recent months. However, today’s gain depicts investors are finally realising a fact about the company they have disregarded all along.

Pitt Street Research just published a research update on CYC last week!

Cyclopharm (ASX:CYC) chart (Graph: TradingView)

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Cyclopharm hasn’t got FDA approval for Technegas 

Technegas is a gas-like, radioactive compound delivered throughout the pathways of a lung, allowing a gamma camera to create a functional ventilation image of the lung and diagnose problems, such as pulmonary embolisms. 

Cyclopharm has been trying to get FDA approval since 2007 and its long-term efforts haven’t born fruit – now it won’t get approval until at least 2023. 

But it has 60 other markets 

But investors who have exited the company have forgotten that Technegas is already sold in 60 other markets. This morning, the company announced unaudited revenues for the half year to 30 June 2022. It reported record revenues of $1.3m, up 36% compared to the prior corresponding period.  

The company also told shareholders it was on track to obtain FDA approval and then enter the US market in mid-2023. It has a cash balance of $26m, which it told shareholders should be sufficient until it obtains FDA approval.  

Shareholders can expect the company’s audited half yearly results by the end of August.

Check out our interview with Cyclopharm’s management here! 

Disclosure: Pitt Street Research/Stocks Down Under directors own CYC shares.

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