Artrya released its 2Q25 quarterly activities report today. There were no great surprises, with a total operating cash flow loss of -$3.6m for the quarter. This is a sequential improvement from the -$4.7m operating cash flow loss from 1Q24 (ex the $3.7m grant), with management reporting a ~$600k per quarter cost reduction. It’s not yet clear if this is a sustainable saving, but we hope to get clarity on Monday’s conference call (details below).
AYA reports that it remains on track to secure FDA approval for the first of its three products by the end of March (Salix Coronary Anatomy). Management reported that the FDA has requested additional information (which isn’t unusual), which probably caused the brief morning sell-down when the results were announced.
Management reported that its business development activities remain on track. AYA is negotiating with two major Australian radiology groups following the successful launch with The Cardiac Centre NSW. As previously announced, three health groups in the US are operating Salix in a “research” capacity, which will immediately switch to fee-paying once FDA approval is achieved.
Artrya raised $5 million during the quarter through a placement at $0.42 per share. Encouraging the placement included Healthliant Ventures, the venture arm of Tanner Health, one of AYA’s existing US customers, implying significant confidence in both Salix and Artrya.
We maintain our buy recommendation and $2.35 per share valuation. We see any price weakness as a buying opportunity, with the share price remaining volatile until 1) FDA approval is secured and 2) AYA generates revenue.
Read more in our initiation of coverage report: Salix: The future of cardiac imaging diagnostics.
2025 will be a huge year for Artrya. The company will not only achieve FDA approvals for two products (three if management is right), but will also start generating its first meaningful revenues in both Australia and the US. As outlined in more detail in our initiation or coverage report, we see several catalysts that will progressively see AYA’s share price more accurately reflect the company’s fair value, including:
- Salix Coronary Anatomy FDA clearance (expected by the end of March);
- Reporting its first revenues;
- The launch of US sales activities;
- Salix Coronary Plaque FDA clearance (expected 1H26);
- Launch of Salix Coronary Plaque;
- Submit FDA application for Salix Coronary Flow (potentially); and
- Ongoing US customer wins
Download the report for the complete analysis.
Artrya is hosting a 2Q25 results call at 2pm AEST on Monday 3rd February. Register here to attend: https://us02web.zoom.us/webinar/register/WN_np7aAGMQSMCqN9R_Tx_i0Q