IDT Australia (ASX:IDT) has announced a strategic realignment to sharpen its operational focus, deliver $1 million in annualised cost savings from financial year 2026, and position the business for more sustainable growth.
The shift comes as revenue from the company’s three core vertical, Active Pharmaceutical Ingredients (API), Specialty Orals, and Advanced Therapies, rose 18.2 per cent over the previous corresponding period to $4.3 million in the first quarter of financial year 2026.
The company said it is moving away from a growth-at-all-costs mindset to prioritise profitability, operational discipline and high-yield opportunities. This includes streamlining underperforming areas and focusing on scalable work with longer-term clients rather than multiple one-off projects.
Revenue for the quarter comprised 45.7 per cent from APIs, 29.2 per cent from Specialty Orals, and 25.1 per cent from Advanced Therapies. Total revenue including disbursements was $4.6 million, down 10.1 per cent on the same period last year due to an unusually high level of pass-through disbursements in previous quarters.
A central pillar of the reset is a renewed focus on APIs, which the company considers its foundation for growth. This includes targeting high-value, follow-on contracts that also support its other two verticals. At the same time, the Specialty Orals division is shifting emphasis to radiopharmaceuticals following recent contract wins and a growing pipeline of enquiries. In Advanced Therapies, IDT continues to leverage its position as a leading Australian manufacturer of mRNA candidates, while reviewing its approach to antibody-drug conjugates (ADCs).
IDT signed $3.4 million in new contracts during the September quarter, underlining sustained market demand for its manufacturing capabilities. The company is also redeploying or reducing operational headcount in lower-return areas as part of the cost optimisation plan.
Executive Chair Mark Simari said the company was taking deliberate steps to reshape its operating model. “It is early stages, but we are looking to transform IDT into a more focused and profitable company. By backing our strengths in APIs, embracing market dynamics, tightening our cost base, and pursuing opportunities in radiopharmaceuticals and advanced therapeutics, IDT is well placed for a stronger and more sustainable future,” he said.