Control Bionics’ US sales and revenue growth fuels strong start to FY25
Australian medical device company Control Bionics (ASX: CBL) is expecting US revenue for the first six months of the 2025 financial year to increase by more than 15% on the previous corresponding period.
The anticipated performance reflects increasing demand for the company’s artificial intelligence-based solutions, growing market penetration and a new Healthcare Common Procedure Coding System code for US sales of the NeuroNode wireless wearable sensor.
With December traditionally being Control’s strongest month for US sales, the company is expecting to end the year on a high with positive EBITDA from the region.
Higher revenue
Revenue for the last six months of the calendar year 2024 is forecast to be almost 30% higher than in the first half of the year.
The company is anticipating increased sales after a new US academic customer placed a maiden order with Control’s US subsidiary.
Australian revenue trends have also been encouraging, with revenue in the second half of calendar year 2024 expected to grow by more than 20% on the first half, underscoring the resilience of Control’s sales efforts and client engagement strategies.
Operational initiatives
Control has introduced a series of operational initiatives to streamline its business and diversify revenue into areas outside of augmentative and assistive communication.
The company reported during the period that it had significantly trimmed its US cost base, resulting in an annualised benefit of approximately $700,000.
It expects to see the full benefit of these reductions in the second half of the 2025 financial year.
Drove demand
Demand for the company’s Drove autonomous module for power wheelchairs has been high since its launch in April 2023.
Four demonstration sites are now operating across Australia, providing potential clients and clinicians with hands-on opportunities to experience the capabilities of Control’s technology in real-world settings.
Following almost 12 months of extensive internal and external testing, Drove was officially included as a Class 1 Medical Device on the Australian Register of Therapeutic Goods in June.
This inclusion allowed Control to commence commercial sales of the module in Australia and helped secure its first distribution partnership with Motion Specialities in Queensland.
Control is currently finalising a deal with Cleveland Metro Health as its clinical trial partner in the US to help bring Drove towards regulatory approval and market readiness.