Australian pharmaceutical manufacturer IDT says it is beginning to show tangible signs of recovery after a period of leadership change and financial pressure, reporting improved earnings and renewed operational momentum in the first half of the financial year 2026.
The Melbourne-based contract manufacturer said its strategic reset, focused on higher-value work, tighter cost control and a sharper commercial approach, is already translating into stronger underlying performance. Revenue from its three core operating verticals rose 20.3 per cent to $8.4 million for the half, while losses narrowed significantly to $436,000, a marked improvement on the $2.7 million loss recorded a year earlier.
Although total reported revenue dipped slightly due to the decline of low-margin disbursement income, the company emphasised that this shift reflects a deliberate move toward more profitable work streams rather than a weakening business base.
The strongest contributor to the improved result was IDT’s Active Pharmaceutical Ingredient (API) manufacturing division, which recorded a surge in revenue as the company doubled down on its legacy strength in complex pharmaceutical production. Interim API revenue jumped more than 190 per cent to $3 million, positioning the unit once again as a foundation for future expansion.
Management said the strategy is to use API manufacturing as an entry point for larger clients, securing long-term partnerships that extend across the full development chain, from early production through to finished drug manufacturing. IDT believes its integrated, GMP-certified offering provides a competitive advantage in winning this end-to-end work.
The company’s specialty oral products division also delivered solid growth, with revenue increasing by roughly a quarter to $2.5 million. This improvement was supported by emerging opportunities in radiopharmaceuticals, alongside ongoing demand from medicinal cannabis and psychedelic drug developers.
Radiopharmaceutical production, in particular, is expected to remain a key driver, supported by recent contract wins and process enhancements to improve production efficiency.
IDT’s sterile fill and advanced therapies business experienced a temporary setback, with revenue falling about 26 per cent to $2.9 million, largely due to project timing. However, activity is expected to normalise in the second half of the year.
The company remains optimistic about the division’s longer-term potential, noting its experience in producing mRNA candidates and the ongoing expansion of global demand for clinical-stage manufacturing capacity.
Beyond revenue growth, much of the improvement in earnings stemmed from tighter operational control. Operating expenses fell by $1.1 million, a reduction of more than 14 per cent, as the company reallocated resources, streamlined operations and began to capture benefits from automation and digitisation initiatives.
These initiatives are now expected to deliver about $2 million in annualised cost savings, double the company’s original estimate when the program was first announced.
Executive Chair Mark Simari said the early results suggest that the company's reset strategy is gaining traction, although further work remains. He said the company is increasingly confident about its growth trajectory as it focuses on productivity improvements, geographic expansion and building momentum across its customer base.