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
Rhea-AI Summary
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.
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
Key Figures
Market Reality Check
Peers on Argus
INBS showed a -2.59% move while sector peers were mixed: AIMD +12.41%, ALUR +5.43%, SINT +1.02%, and NXL -4.31%, NVNO -4.56%. Momentum scanner data also shows one peer up and one down, supporting a stock-specific move rather than a sector-wide trend.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Feb 24 | Commercial partnership | Positive | -2.6% | Partnership with Bouygues UK to deploy fingerprint drug screening on 13 sites. |
| Feb 12 | Earnings release | Positive | -6.7% | Reported 48% Q2 revenue growth and 104% reader sales surge with margin gains. |
| Feb 05 | Earnings preview | Positive | -9.1% | Pre-announced ~48% Q2 revenue growth and first-half revenue of about $2.01M. |
| Jan 28 | Clinical trial start | Positive | +2.9% | Initiated clinical studies for an FDA 510(k) submission for codeine detection. |
| Jan 02 | Private placement | Negative | -17.2% | Closed $10.0M private placement with new shares and warrants, implying dilution. |
Recent positive operational and earnings headlines have often been followed by negative 24-hour price reactions, while clinical progress and dilutive financings have aligned more closely with price direction.
Over recent months, INBS has reported several growth and strategic milestones. A $10.0M private placement on Jan 2, 2026 funded working capital and a planned FDA 510(k) submission but saw a -17.21% reaction. Clinical studies for U.S. codeine detection announced on Jan 28, 2026 drew a positive +2.93% response. Preliminary and then record Q2 revenue growth of ~48% and strong reader/cartridge gains both preceded share price declines. A Bouygues UK partnership on Feb 24, 2026 similarly coincided with a negative move, suggesting good news has not consistently translated into near-term price strength.
Regulatory & Risk Context
An effective Form S-3 resale registration dated Jan 9, 2026 covers 6,896,550 shares linked to a prior private placement. The company received $10.0 million in gross proceeds from that placement and will not receive proceeds from the registered resales, though it could receive up to about $18.87 million if all related warrants are exercised for cash. The filing highlights that the large resale block could pressure the stock if sold quickly and notes recent actions such as a 1-for-10 reverse split to maintain Nasdaq listing compliance.
Market Pulse Summary
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 Terms
iso 13485 regulatory
mdsap regulatory
AI-generated analysis. Not financial advice.
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
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
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
What did Intelligent Bio Solutions (INBS) announce about the Syrma Johari manufacturing partnership on February 25, 2026?
How much production cost savings and gross margin improvement does INBS expect from the Syrma Johari partnership?
What manufacturing changes did Intelligent Bio Solutions announce for lateral flow test strips on February 25, 2026?
Where will the first Syrma Johari-manufactured INBS readers be deployed and what markets are targeted next?
What operational milestones should investors watch after INBS's February 25, 2026 announcement?
