(RTTNews) - Shares of Intelligent Bio Solutions Inc. (INBS) more than doubled today after the medical technology company announced a strategic manufacturing partnership with Syrma Johari MedTech Ltd for its flagship Intelligent Fingerprinting Drug Screening Reader.
The partnership is intended to support and scale the production of the Intelligent Fingerprinting Drug Screening Reader and also support long-term margin improvement.
The Intelligent Fingerprinting Drug Screening System is designed to detect recent use of substances commonly encountered in the workplace, such as opioids, cocaine, methamphetamine, and cannabis, by analyzing sweat from fingerprints. This non-invasive, portable system serves as a deterrent against drug abuse and encourages employees to adhere to health and safety policies.
In December 2024, the company submitted its 510(k) premarket notification to the FDA for review and clearance of its Intelligent Fingerprinting Drug Screening System. The FDA has requested additional information, and the company is in the process of evaluating the FDA's questions and working toward resubmitting a new 510(k) notification. However, outside the U.S., it is commercially available in many countries, including Chile, the United Kingdom, Australia, and Scandinavia, to name a few.
The partnership with Syrma Johari is expected to result in annual production cost savings of more than 40%, translating to an expected improvement of roughly 20 percentage points in gross margin compared with its previous manufacturing arrangement. Additionally, Syrma Johari's manufacturing capacity is approximately four times Intelligent Bio's current capacity, positioning the company to efficiently support anticipated demand as it scales commercial operations. The collaboration is also expected to strengthen Intelligent Bio's global manufacturing strategy, reduce reliance on a single supplier and build greater resilience into its supply chain.
The company is targeting a 2026 U.S. market entry for the Intelligent Fingerprinting Drug Screening Reader, subject to regulatory clearance.
A 1-for-10 reverse split of Intelligent Bio's common stock came into effect on December 16, 2025. As of this writing, INBS is at $8.97, up 119%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
