IDT Australia Ltd (ASX: IDT) Secures Sanofi Contract and Closes FY24 with Exceptional Growth

IDT Australia Limited (ASX: IDT) is making significant strides in the pharmaceutical manufacturing industry, marked by two pivotal developments that highlight the company’s strategic advancements and robust financial performance.

New Contract with Sanofi: A Boost for mRNA Technology

IDT Australia has secured a substantial follow-on contract with Sanofi Australia, valued between $2.5 million and $4 million. This contract focuses on the preclinical formulation, development, and manufacturing of Sanofi’s messenger RNA (mRNA) technology, a crucial component of their translational clinical program. This latest agreement builds on the foundation of a Master Service Agreement (MSA) awarded to IDT by Sanofi in April 2024. The MSA allows Sanofi the flexibility to engage IDT for various services and paves the way for future collaborations.

This partnership is more than just a financial gain for IDT; it positions the company as a significant player in the mRNA technology space, which is rapidly expanding and becoming increasingly vital in medical research and therapeutic development. As the pharmaceutical industry continues to explore the vast potential of mRNA technologies, IDT's role in this contract underscores its growing influence in this cutting-edge field.

Strong Financial Performance in FY24

In addition to the Sanofi contract, IDT Australia has reported an impressive financial performance for the fourth quarter of FY24, with unaudited revenue skyrocketing by 87% to $4.6 million. This robust finish propelled the company’s total unaudited revenue for the year to $13.5 million—a 92% increase over the previous year and well above the company’s guidance range.

Key drivers of this growth were the three core business pillars of IDT: Advanced Therapies, API Manufacturing, and Specialty Orals. The Advanced Therapies division emerged as the standout performer, with revenue increasing by a staggering 1,737% compared to the same period last year. This growth is a direct result of IDT’s strategic focus on innovative medical technologies, such as Antibody-Drug Conjugates (ADC) and mRNA, which are among the fastest-growing sectors in the pharmaceutical industry.

The API Manufacturing pillar also demonstrated significant progress, with revenue increasing by 182% year-over-year, reinforcing IDT’s strategy of providing an integrated value chain. Meanwhile, the Specialty Orals division, despite facing industry challenges, managed to grow by 6.7%, showcasing its resilience and contribution to the overall revenue surge.

Strategic Growth and Future Prospects

IDT Australia’s strategic transformation, initiated in late 2022, is clearly yielding results. The company has not only achieved remarkable revenue growth but also solidified its market position with a strong pipeline of client proposals, amounting to $39.8 million in FY24. Of this, $10.9 million have already been secured as binding contracts, with an additional $24.7 million under active consideration.

The momentum generated in FY24, bolstered by the Sanofi contract and significant growth across all business pillars, sets a solid foundation for continued expansion. IDT’s focus on advanced therapies, particularly in mRNA technology and Antibody-Drug Conjugates, positions the company to capitalize on emerging opportunities in the rapidly evolving pharmaceutical landscape.

Moreover, IDT’s proactive participation in industry events, such as the Bio 2024 conference in San Diego, has played a critical role in generating new sales leads and increasing market awareness of its capabilities. With its upgraded facilities and a clear strategic vision, IDT is well-prepared to drive further growth and deliver enhanced results in the coming financial year.

Back of today’s ASX announcement, $IDT shares are trading at A$ 0.12, up by 4.35% as of 9th August 2024.