"This is a nuclear medicine business that does functional lung imaging, and its Technegas product is already the standard of care for pulmonary embolism across many markets. It has taken the place of traditional CT scans.
As is often the case with anything in healthcare, the real pot of gold at the end of the rainbow is always the United States, where you can make the most money. Recently, CycloFarm was awarded a pass-through designation by the FDA. I won't bore you with all the details, but effectively what that means is that not only is this a clinically superior method of imaging lungs, but it is also crucially economically superior for hospitals.
As a result of that, Veterans Affairs, which is the largest hospital owner in the world with nearly 200 sites, has recently signed an agreement to roll out the Technegas product across their sites. This gives CycloFarm a real leg up in progressing towards their target for 2025 of 300 installations.
We think there's tremendous upside in the stock if it even looks like they're getting anywhere close to that target. We believe that eventually, Technegas will dominate the market for functional lung imaging, and that implies any recurring revenues well in excess of the company's current market cap."
CYC Price at posting:
$1.90 Sentiment: Buy Disclosure: Held
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