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Intelligent Bio Solutions Successfully Manufactures and Ships First Readers with New Partner, Accelerating Scale and Driving Gross Margin Expansion in Anticipation of Planned U.S. Entry

Intelligent Bio Solutions (NASDAQ: INBS) confirmed first shipment and deployment of readers manufactured with Syrma Johari, validating scaled production and ISO 13485/MDSAP compliance.

(Very Positive)
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Intelligent Bio Solutions (NASDAQ: INBS) confirmed first shipment and deployment of readers manufactured with Syrma Johari, validating scaled production and ISO 13485/MDSAP compliance. The partnership increases reader capacity ~4x and is on track to deliver >40% annual production cost savings, targeting ~20 percentage-point gross margin improvement. INBS also doubled in-house lateral flow strip capacity, improving vertical integration, R&D speed, and enabling expanded drug-panel cartridges ahead of planned U.S. market entry in 2026.

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Positive

  • Reader capacity increased ~4x via Syrma Johari partnership
  • Production cost savings expected >40% annually
  • Gross margin improvement expected ~20 percentage points annually
  • Lateral flow capacity doubled in-house, accelerating R&D
  • Deployment of readers across U.K. and Europe ahead of U.S. entry

Negative

  • U.S. entry still pending regulatory and go-to-market execution in 2026
  • Inventory build and expansion depend on continued shipments through 2026
Argus Feb 25 session
-4.35% close to close Open Argus
Details

News Market Reaction – INBS

In the Feb 25 session, INBS declined 4.35%, reflecting a moderate negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement emphasizes manufacturing scale and margin expansion ahead of planned U.S. entry in...
Analysis

This announcement emphasizes manufacturing scale and margin expansion ahead of planned U.S. entry in 2026. INBS expects more than 40% annual production cost savings, roughly 20 percentage points of gross margin improvement, and access to manufacturing capacity about 4x prior levels, plus doubled lateral flow test strip output. In context of recent revenue growth, financings, and an effective resale shelf covering 6,896,550 shares, investors may watch execution on U.S. regulatory timelines, capacity utilization, and gross margin trends.

Key Figures

Production cost savings: more than 40% annually Gross margin expansion: approximately +20 percentage points annually Manufacturing capacity increase: approximately 4x prior capacity +5 more
Production cost savings
more than 40% annually
Expected annual production cost savings from Syrma Johari partnership
Gross margin expansion
approximately +20 percentage points annually
Expected annual gross margin improvement from new manufacturing setup
Manufacturing capacity increase
approximately 4x prior capacity
Reader manufacturing capacity with Syrma Johari partnership
Test strip capacity
2x in-house capacity
Doubled lateral flow test strip production capacity
Planned U.S. entry
2026
Planned U.S. market entry beyond Forensic Use Only category
Additional shipments timeline
throughout 2026
Expected additional reader production shipments
Current share price
$4.14
Pre-news close price versus 52-week range $3.70–$25.00
52-week drawdown
-83.44% vs high
Price vs 52-week high prior to this news

Historical Context

5 past events · Latest: Feb 24
5 events
  1. Feb 24

    Commercial partnership

    24h Move
    -2.6%

    Partnership with Bouygues UK to deploy fingerprint drug screening on 13 sites.

  2. Feb 12

    Earnings release

    24h Move
    -6.7%

    Reported 48% Q2 revenue growth and 104% reader sales surge with margin gains.

  3. Feb 05

    Earnings preview

    24h Move
    -9.1%

    Pre-announced ~48% Q2 revenue growth and first-half revenue of about $2.01M.

  4. Jan 28

    Clinical trial start

    24h Move
    +2.9%

    Initiated clinical studies for an FDA 510(k) submission for codeine detection.

  5. Jan 02

    Private placement

    24h Move
    -17.2%

    Closed $10.0M private placement with new shares and warrants, implying dilution.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

iso 13485, mdsap, lateral flow, lateral flow test strip
4 terms
iso 13485 regulatory
"manufactured in compliance with ISO 13485, MDSAP, and applicable regulatory requirements"
ISO 13485 is an international quality management standard for organizations that design, produce, or service medical devices. Think of it as a factory’s rulebook and checklist that helps ensure products are safe, consistently made, and meet regulatory rules worldwide. For investors, certification signals lower operational and regulatory risk, easier market access, and greater reliability of a company’s medical products and supply chain — similar to buying from a trusted, inspected supplier.
mdsap regulatory
"manufactured in compliance with ISO 13485, MDSAP, and applicable regulatory requirements"
The Medical Device Single Audit Program (MDSAP) is an international regulatory framework that allows one comprehensive audit of a medical device manufacturer’s quality and safety systems to satisfy inspection requirements in multiple participating countries. For investors, MDSAP matters because it reduces the risk of unexpected regulatory delays, lowers repeated inspection costs, and can speed access to several markets at once—like getting one multi-country safety check instead of many separate ones.
lateral flow medical
"advanced lateral flow manufacturing equipment that has doubled its in-house production capacity"
A lateral flow test is a small, disposable diagnostic device that detects the presence of a substance (like a virus protein or antibody) in a liquid sample by letting it flow across a paper strip with embedded reagents, similar to a home pregnancy test. Investors care because these tests are cheap, fast, and easy to scale and distribute, making them a major revenue source during health events, subject to regulatory approval, manufacturing capacity, and changing demand.
lateral flow test strip medical
"manufacturing capabilities for the lateral flow test strip integral to its testing system"
A lateral flow test strip is a small, disposable diagnostic device that detects the presence or absence of a specific substance (like a virus protein or antibody) in a tiny sample of blood, saliva, or swab fluid and shows results as visible lines. For investors, these strips matter because they are low-cost, fast-to-manufacture products with high-volume sales and sensitive regulatory and supply-chain dynamics; think of them as single-use sensors whose demand and approval status can quickly affect a company’s revenue and margins.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Successful delivery in partnership with Syrma Johari validates manufacturing scale, strengthens commercial readiness, and supports planned U.S. market entry in 2026

Partnership on track to deliver annual production cost savings of more than 40% with expected improvement of approximately 20 percentage points in gross margin annually

Doubled in-house lateral flow test strip production capacity strengthens vertical integration, accelerates R&D, and enables panel expansion

NEW YORK, Feb. 25, 2026 (GLOBE NEWSWIRE) -- Intelligent Bio Solutions Inc. (Nasdaq: INBS) ("INBS" or the "Company"), a medical technology company delivering intelligent, rapid, non-invasive testing solutions, today announced the successful receipt and deployment of the first shipment of Intelligent Fingerprinting Drug Screening Readers manufactured under its new strategic manufacturing partnership with Syrma Johari MedTech Ltd. ("Syrma Johari"). The shipment marks a significant step in scaling the Company’s production capacity and validates the operational and financial benefits of the collaboration announced in December 2025.

The readers are now being deployed across key customer verticals, including construction, transportation and logistics, and manufacturing, throughout the U.K. and Europe, supporting growing commercial demand and expanding the Company's installed base ahead of planned entry into the U.S. market, beyond the Forensic Use Only category, later this year.
        
The successful first reader shipment confirms that the Syrma Johari partnership is performing as planned, with readers meeting INBS' quality standards and manufactured in compliance with ISO 13485, MDSAP, and applicable regulatory requirements. With access to manufacturing capacity approximately four times its prior capability, the Company is now positioned to accelerate fulfillment and is on track to deliver annual production cost savings of more than 40%, translating to an expected improvement of approximately 20 percentage points in gross margin annually.

In addition to scaled reader production, INBS has considerably enhanced its manufacturing capabilities for the lateral flow test strip integral to its testing system. The Company has sourced advanced lateral flow manufacturing equipment that has doubled its in-house production capacity, delivering multiple strategic advantages including greater control over critical components that improve margins and reduce lead times, increased cartridge output that provides the product development team with expanded testing inventory for faster innovation cycles, and the ability to produce cartridges with additional test lines that unlock opportunities to explore expanded drug panels tailored to specific customer segments, regulatory markets, or emerging substance trends.

"Receiving and deploying our first shipment of readers from Syrma Johari, combined with doubling our in-house lateral flow test strip production capacity, is a transformational step in our ability to scale intelligently and profitably," said Callistus Sequeira, Vice President of Global Quality & Operations at Intelligent Bio Solutions. "We are building a vertically integrated, cost-efficient manufacturing engine that supports margin expansion, accelerates innovation, and positions us to enter the U.S. market with operational strength and the capacity to grow with demand."

The Company expects additional production shipments throughout 2026 as it continues to build inventory, expand its commercial footprint, and execute on its U.S. regulatory and go-to-market strategy.

About Intelligent Bio Solutions Inc.

Intelligent Bio Solutions Inc. (NASDAQ: INBS) is a medical technology company delivering intelligent, rapid, non-invasive testing solutions. The Company believes that its Intelligent Fingerprinting Drug Screening System will revolutionize portable testing through fingerprint sweat analysis, which has the potential for broader applications in additional fields. Designed as a hygienic and cost-effective system, the test screens for the recent use of drugs commonly found in the workplace, including opiates, cocaine, methamphetamine, and cannabis. With sample collection in seconds and results in under ten minutes, this technology would be a valuable tool for employers in safety-critical industries. The Company’s current customer segments outside the U.S. include construction, manufacturing and engineering, transport and logistics firms, mining, drug treatment organizations, and coroners.

For more information, visit: https://ibs.inc/ 

Forward-Looking Statements

Some of the statements in this release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and the Private Securities Litigation Reform Act of 1995, and involve risks and uncertainties. Forward-looking statements in this press release include, without limitation, statements regarding Intelligent Bio Solutions Inc.’s ability to successfully develop and commercialize its drug and diagnostic tests, realize commercial benefits from its partnerships and collaborations, and secure regulatory clearance or approvals, among others. Although Intelligent Bio Solutions Inc. believes that the expectations reflected in such forward-looking statements are reasonable as of the date made, actual results may differ materially from those expressed or implied by such statements. Intelligent Bio Solutions Inc. has attempted to identify forward-looking statements by terminology, including “believes,” “estimates,” “anticipates,” “expects,” “plans,” “projects,” “intends,” “potential,” “may,” “could,” “might,” “will,” “should,” and “approximately,” or other words that convey uncertainty of future events or outcomes to identify these forward-looking statements. These statements are only predictions and involve known and unknown risks, uncertainties, and other factors, including those described in Intelligent Bio Solutions’ public filings with the U.S. Securities and Exchange Commission. Any forward-looking statements contained in this release speak only as of the date of this release. Intelligent Bio Solutions undertakes no obligation to update any forward-looking statements contained in this release to reflect events or circumstances occurring after its date or to reflect the occurrence of unanticipated events.

Company Contact
Intelligent Bio Solutions Inc.
info@ibs.inc

Investor & Media Contact
Valter Pinto, Managing Director
KCSA Strategic Communications
PH: (212) 896-1254
INBS@kcsa.com


FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What did Intelligent Bio Solutions (INBS) announce about the Syrma Johari manufacturing partnership on February 25, 2026?

They announced successful manufacture and shipment of first readers from Syrma Johari, validating scaled production and quality. According to the company, this partnership raises reader capacity about fourfold and meets ISO 13485 and MDSAP compliance requirements, supporting commercial deployments in the U.K. and Europe.

How much production cost savings and gross margin improvement does INBS expect from the Syrma Johari partnership?

INBS expects annual production cost savings of more than 40% and about a 20 percentage-point gross margin improvement. According to the company, those figures reflect scaled manufacturing efficiency from higher reader capacity and lower unit costs under the new partnership.

What manufacturing changes did Intelligent Bio Solutions announce for lateral flow test strips on February 25, 2026?

The company said it doubled in-house lateral flow test strip production capacity to improve margins and reduce lead times. According to the company, this enables more cartridge output for R&D, faster innovation cycles, and the ability to produce cartridges with additional test lines.

Where will the first Syrma Johari-manufactured INBS readers be deployed and what markets are targeted next?

The initial readers are being deployed across construction, transportation and logistics, and manufacturing in the U.K. and Europe. According to the company, this expands the installed base and supports a planned expansion into the broader U.S. market later in 2026.

What operational milestones should investors watch after INBS's February 25, 2026 announcement?

Investors should watch additional production shipments, inventory builds, and U.S. regulatory/go-to-market progress through 2026. According to the company, continued shipments and execution on U.S. strategy will be key to realizing the cited cost and margin benefits.

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