Control Bionics Targets Strong US Revenue Growth and Expands Market Reach

3 min read | December 17, 2024 10:58 AM AEDT | By Team Kalkine Media

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Highlights

Control Bionics (CBL) expects strong revenue growth for the US market in FY25.

Operational initiatives and cost reductions drive improved efficiency.

Growing demand for Drove module strengthens market presence.

Control Bionics (ASX:CBL), a leading Australian medical device company, is forecasting substantial growth in US revenue for the first half of the 2025 financial year. The company expects revenue to rise by over 15% compared to the same period in the previous year. This anticipated performance highlights increasing demand for Control Bionics' AI-driven solutions, alongside stronger market penetration and the introduction of a new Healthcare Common Procedure Coding System (HCPCS) code for its NeuroNode wireless wearable sensor in the US.

Control Bionics is also projecting strong performance for December, traditionally its most productive month for US sales. The company expects to finish the calendar year with positive EBITDA from its US operations, marking a promising close to the year.

Revenue Momentum Across Regions

In addition to US growth, Control Bionics (CBL) is seeing encouraging revenue trends in the Australian market. Revenue for the second half of 2024 is forecast to grow by over 20% compared to the first half of the year. This growth underscores the success of the company’s sales strategies and robust client engagement across key regions.

A new academic customer in the US has also placed a significant maiden order with the company’s subsidiary, further boosting sales momentum.

Operational Improvements Drive Efficiency

To strengthen its operational performance, Control Bionics (CBL) has introduced various initiatives, including significant cost reductions in its US operations. These measures are expected to deliver annualised savings of approximately $700,000. The full benefit of these reductions is anticipated in the latter half of the 2025 financial year, further enhancing the company’s profitability.

Growing Demand for Drove Technology

Demand for the Drove autonomous module for power wheelchairs has remained strong since its launch in April 2023. Control Bionics (CBL) has established four demonstration sites across Australia, providing clinicians and potential clients with opportunities to experience the technology’s real-world applications.

The Drove module was officially included as a Class 1 Medical Device on the Australian Register of Therapeutic Goods in June 2024. This milestone allowed the company to begin commercial sales in Australia and secure its first distribution partnership with Motion Specialties in Queensland.

To advance its market presence in the US, Control Bionics (CBL) is finalising a clinical trial partnership with Cleveland Metro Health. This collaboration is expected to support the regulatory approval and future market readiness of the Drove module.

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