Australian pharmaceutical manufacturing company IDT Australia (ASX:IDT) has reported an 83 per cent increase in revenue for the first half of financial year 2025.
Revenue of $10.5 million compared to the prior corresponding period was accompanied by a 19.5 per cent fall in loss before tax of $3.3 million.
The company said that its revenue and profitability metrics have reached their strongest levels since it initiated a strategic transformation more than two years ago.
It said the growth coincides with strong demand from returning customers and US-based entities attracted to Australia because of its high regulatory standards, cost-effectiveness and attractive tax credits for research and development.
"As these programs are at the early stage of the asset lifecycle (e.g. entering Phase 1 trials), there is further upside as these programs progress and scale," said the company, adding that the improvement in profitability was achieved despite the capital investments made in the period to ramp up the advanced therapies vertical, the hiring of additional personnel in operations and the extra working capital required to service major contracts, including with Sanofi.
IDT said the advanced therapies vertical recorded revenue of $3.9 million compared with $323,000 in the prior corresponding period.
The company said revenue from active pharmaceutical ingredient manufacturing declined 63.6 per cent to $1 million due to the timing and cycling of orders in the period.
IDT CEO Paul McDonald said, "The momentum we have built is carrying through into the second half of this financial year with IDT signing nearly $20 million in new contracts in H1FY25 alone. These new contracts are for programs at the early stage of the product lifecycle. As these programs progress towards commercialisation, we are in prime position to win follow-on work for larger quantities of the drug, which will generate higher profit margins for our business due to economies of scale and enhanced efficiency.”