Health Check: Truscreen’s diagnosis is for revenue growth and cash flow break even

• Cervical cancer detection play Truscreen says its year is off to a good start
• PYC Therapeutics enters “transformational period”
• … as does Imagion Biosystems

Trans-Tasman cervical screening outfit Truscreen Group (ASX:TRU) has promised a significant uptick in revenue for the current financial year, with the company achieving “monthly cash flow positive” status by March next year.

At the company’s annual meeting today, management said most of Truscreen’s revenue would continue to derive from China, the company’s key market.

The Middle Kingdom accounted for 88% of sales in the year to March 2025, but the company expects this to decline to 63% this year as delayed government screening programs in Vietnam, Zimbabwe and Uzbekistan gather momentum.

The Truscreen device is a pen-like wand covered by a single-use sensor.

The sensor gently probes multiple spots on the cervix, with precision lens and electrodes picking up low-level electrical signals.

An algorithm then interprets these signals, with a result available in one to two minutes.

In contrast, labs might take weeks – or even months – to return results of the standard-of-care Pap tests.

To date, Truscreen has a foothold in 14 countries, with 112 hospitals and clinics availing of the device.

The company says 232 devices are in use, generating recurring revenue from the single-use sensor.

Truscreen last year recorded revenue of NZ$1.7 million ($1.5 million), 19% below the previous NZ$2.1 million.

Management attributes this to delayed government programs in four countries.

Truscreen also reported a net loss of NZ$2.2 million, compared with a previous NZ$2 million deficit.

While Truscreen has the sniff of a device company only just hitting its straps, investors ascribe a mealy $11 million-ish valuation.

We like PYC, say brokers

Broker Canaccord has upped its valuation of PYC Therapeutics (ASX:PYC) as the eye and kidney diseases house enters a “transformation period” over the next six months.

Bell Potter also has a rosy appraisal of the stock, which follows PYC’s release of first safety and efficacy data for its autosomal dominant optic atrophy (ADOA) program.

By combining existing ribonucleic acid (RNA) drug design with its proprietary delivery platform, PYC is developing precision therapies for patients with genetic diseases that have no treatment options.

PYC’s lead program is for the rare eye disease retinitis pigmentosa, but its ADOA effort ranks highly in the excitement stakes, too.

The company also has a program for polycystic kidney disease (PKD), the most prevalent monogenic disease in humans marked by extreme swelling of the organ.

While the ADOA trial enrolled only nine patients, it showed clean safety with no drug-related adverse events.

The average ‘visual acuity’ – the number of lines that patients can read on an eye chart was better in treated eyes than untreated ones.

Valuing the stock at $2.50 a share, Bell Potter describes this as “strong early data validating [the company’s] broader platform.”

Canaccord, meanwhile, says a positive PKD efficacy readout could add $1.25 per share of value. PYC is expected to issue a trial update in early to mid 2026.

The firm values the stock at $2.85, which implies 140% of upside.

That’s not quite a ten-bagger, but we’ll take it.

Imagion that – a better breast cancer imaging tool

Pitt Street Research describes Imagion Biosystems (ASX:IBX) as being at the “pivotal point of history” as it moves to phase II trialling of its breast cancer detection tool, Magsense.

“Compared to other agents, Magsense has the potential to be safer and better at identifying cancers at an earlier stage,” the firm says in a company-commissioned report.

“For patents [this] can mean intervention is cheaper, less invasive and more likely to succeed.”

The tool avoids the need for painful biopsies.

Magsense also is designed to work with existing magnetic resonance imaging scanners, thus blending into current clinical workflows.

Imagion plans to file an Investigational New Drug application with the US Food & Drug Administration (FDA). This would enable a phase II study in patients expressing the human epidermal growth factor receptor 2 (HER2+).

“We see partnering interest as a plausible scenario, particularly if Magsense can show strong interim data,” the firm says.

Pitt Street research opines that investors have been “unfairly impatient” with Imagion, the company, despite the company coming a long way since listing in 2017.