Artrya provided an update on its outlook and US strategy at its AGM yesterday. Four hospital groups have joined the SAPPHIRE study, including Ascension Healthcare, the seventh-largest healthcare group in the US. AYA competitor Heartflow and some of its staff are under DOJ investigation for breaches of the federal Anti-Kickback Statute and Civil False Claims Act.

Results in line, several milestones achieved: Artrya’s operating cash flow of -$6 million was slightly more negative than expected due to around $0.8 million in on-offs. Costs are expected to stay at around -$6 million a quarter for the next two quarters as the company works towards the FDA submission for Salix Coronary Flow (SCF) and builds out its US resources. During the quarter, AYA raised $80 million in an oversubscribed placement and share purchase plan.

There appears to be some confusion among Artrya shareholders regarding what they’re voting for in the upcoming General Meeting, scheduled for 24th October. The three resolutions relate to the group’s recent $75 million placement. Artrya completed the initial $60 million placement by utilising the group’s ability to issue shares up to 25% of its existing outstanding shares, without requiring shareholder approval. Only the third Resolution seeks approval to issue the 7.2 million shares of Tranche 2 ($14.7 million).

Artrya opened its share purchase plan (SPP) yesterday, which accompanies the group’s $75 million private placement to sophisticated and institutional investors. The SPP allows existing investors (as of record date 8th September) to purchase up to $30,000 worth of shares at the same issue price as the placement ($2.05). The company reserves the right to accept oversubscriptions or to scale back the offer. Given the group’s shares closed at $2.35 today, we expect strong demand.

Artrya announced on Tuesday that it has secured binding commitments for $75 million in a placement to institutional and sophisticated investors. This is well above the initially announced $60 million target (announced on the 5th September), with reports of demand being several multiples of the final figure.

We update our review of GDP and GDP per capita following Wednesday’s ABS release of the September national accounts. GDP grew by 0.6% in the June quarter, tied for the highest growth rate recorded since December 2022. This growth dragged GDP per capita up, reaching +0.2% for the quarter. This is the second positive GDP per capita result in the last three quarters, but only the third since Jun-22 (see Figure 2).

We update our forecasts following yesterday’s announcement of the FDA’s clearance of Salix Coronary Plaque, the release of the group’s full-year results and today’s investor call. We increase our valuation to $3.48 per share and expect to revisit it within 6-9 months as Artrya makes progress on the SAPPHIRE study.

Artray announced today that its primary product, Salix Coronary Plaque (SCP) gained FDA clearance. This is a major milestone for the company, as SCP is Artrya’s core product, responsible for 70% of the group’s future revenue. The approval means Artrya can start charging Tanner Health for SCP following the signing of a commercial agreement in July. It also means that the agreements with Artryra’s two other US partners, Northeast Georgia Health System and Cone Health, will start generating meaningful revenue.

Artray reported its 4Q25 cash flows yesterday. Operating cash flow was -$5.4 million with a step up in cash burn reducing operating cash flow. AYA is continuing to progress its SAPPHIRE study, with news on study partners expected in month or so. Costs in the quarter increased as AYA focused on submitting Silax Coronary Plaque for FDA approval (16th July 2025) and completing development of Silax Coronary Flow.

We review the relative performance of Australia’s leading indices and look at the long-term impact of underperformance. We also examine the fundamental limitation of the ASX Small Ordinaries index and why you should never passively invest in it.