INBS Stock Surges 132.4% on New Manufacturing Partnership

Intelligent Bio Solutions INBS recently announced a new strategic manufacturing partnership aimed at strengthening its global production capabilities and improving long-term profitability. The collaboration supports the company’s efforts to scale operations efficiently as it prepares for broader commercial expansion.

From an investor perspective, the move highlights INBS’s focus on building a more resilient supply chain while positioning the business for improved margins ahead of its planned U.S. market entry. The partnership signals management’s intent to support future demand with greater flexibility and cost efficiency.

Likely Trend of INBS Stock Following the News

Following the announcement, shares of the company surged 132.4% and closed at $9.53 on Wednesday. However, in the last six-month period, INBS’s shares have lost 47.9% against the industry’s 7.1% growth. The S&P 500 increased 12.7% in the same time frame.

Over the long run, the manufacturing partnership is likely to strengthen INBS’s business by lowering production costs, improving gross margins, and reducing supply-chain risk through diversified and scalable manufacturing. With significantly higher capacity and strong regulatory capabilities, the collaboration positions INBS to support future demand across global markets, enhance execution as it enters the United States and build a more sustainable and profitable operating model as volumes grow.

Meanwhile, INBS currently has a market capitalization of $3.9 million.

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Details on the Partnership News

Intelligent Bio Solutions announced a new strategic manufacturing partnership with Syrma Johari MedTech Ltd. (Syrma Johari) to support and scale production of its Intelligent Fingerprinting Drug Screening Reader. Under the agreement, Syrma Johari will serve as a key manufacturing partner, significantly expanding INBS’ global production footprint and supporting the company’s preparations for broader commercial expansion, including its planned entry into the U.S. market in 2026.

The partnership is expected to deliver meaningful operational and financial benefits. INBS estimates annual production cost savings of more than 40%, which management expects to translate into an improvement of roughly 20 percentage points in gross margin compared with its prior manufacturing setup. In addition, Syrma Johari’s available manufacturing capacity is approximately four times INBS’ current capacity, providing sufficient headroom to support higher volumes as demand increases across multiple regions.

Syrma Johari operates 14 manufacturing facilities and four design and innovation centers across India, Europe, and the United States, with a combined manufacturing footprint of more than 1.1 million square feet. The company holds key certifications and offers vertically integrated capabilities spanning electronics, PCB manufacturing, mechanical assembly, clean-room production, functional testing, and regulatory documentation support. The partnership also benefits from Syrma Johari’s upcoming medical-grade plastics manufacturing facility in India, scheduled to open in January 2026, further enhancing scale, supply-chain resilience, and manufacturing flexibility for INBS.

Favorable Industry Prospects for INBS

Per a report by MarketsandMarkets, the global drug screening market, valued at $9.1 billion in 2024, is forecasted to expand at a robust CAGR of 16.6%, reaching $19.5 billion by 2029.

Growth of the drug screening market is driven by the growing drug & alcohol consumption and the enforcement of stringent laws mandating drug & alcohol testing.

Other Recent Collaboration for INBS

In December 2025, INBS announced a non-exclusive strategic collaboration with Vlepis Pty Ltd, an Australian medical and wellbeing technology company focused on advanced sensing and wearable patch solutions. The alliance strengthens INBS’s ability to expand into the consumer health monitoring market by complementing its existing drug-testing platform and the recently added SMARTOX SmarTest Patch that the company distributes.

INBS’s Zacks Rank & Stocks to Consider

INBS carries a Zacks Rank #3 (Hold) at present.

Some better-ranked stocks from the broader medical space are Intuitive Surgical ISRG, Medpace Holdings MEDP and Boston Scientific BSX.

Intuitive Surgical, sporting a Zacks Rank #1 (Strong Buy) at present, posted a third-quarter 2025 adjusted earnings per share (EPS) of $2.40, beating the Zacks Consensus Estimate by 20.6%. Revenues of $2.51 billion topped the Zacks Consensus Estimate by 3.9%. You can see the complete list of today’s Zacks #1 Rank stocks here.

ISRG has an estimated long-term earnings growth rate of 15.7% compared with the industry’s 11.9% growth. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 16.34%.

Medpace, currently carrying a Zacks Rank #2 (Buy), reported a third-quarter 2025 EPS of $3.86, which surpassed the Zacks Consensus Estimate by 10.29%. Revenues of $659.9 million beat the Zacks Consensus Estimate by 3.04%.

MEDP has an estimated earnings growth rate of 17.1% for 2025 compared with the industry’s 16.6% growth. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 14.28%.

Boston Scientific, currently carrying a Zacks Rank #2, reported a third-quarter 2025 adjusted EPS of 75 cents, which surpassed the Zacks Consensus Estimate by 5.6%. Revenues of $5.07 billion topped the Zacks Consensus Estimate by 1.9%.

BSX has an estimated long-term earnings growth rate of 16.4% compared with the industry’s 13.5% growth. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 7.36%.

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This article originally published on Zacks Investment Research (zacks.com).

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