Genetic Signatures (ASX: GSS) has signed a 10-year supply agreement with Hvidovre Hospital in Denmark for its EasyScreen Pan-Enteric technology, a deal expected to drive long-term recurring revenue and bolster its EMEA growth strategy.
Under the agreement, the hospital will receive EasyScreen equipment, reagents, and consumables for gastrointestinal screening.
The reagent and consumables agreement is set for a 10-year term, and can be extended by up to two additional 12-month periods, while the equipment agreement has no fixed term but is expected to run for at least eight years.
Commercial orders for the technology are anticipated to commence from September 2026.
The first-year testing volume is projected at 28,000 samples, with an estimated 3% annual growth.
EMEA Growth Strategy Bolstered
This long-term supply deal with Hvidovre Hospital represents a significant milestone for Genetic Signatures' EMEA (Europe, Middle East, and Africa) growth strategy.
It signals broader European and global adoption momentum for the company's diagnostic solutions.
The EasyScreen Pan-Enteric assay uses proprietary 3base multiplex technology, and can detect 24 gastrointestinal pathogens from a single patient sample in an automated workflow.
The company has highlighted favourable outcomes from UK validations, including improved detection and diagnostic yield, reduced turnaround times, and simplified workflows.
Restructuring for Efficiency
This new contract follows Genetic Signatures' announcement in late March 2026 regarding a significant organisational restructure that aims to reduce operating costs and improve efficiency.
The company expects to achieve ongoing cost savings of up to $5 million from FY2027.
This plan includes redundancies, with up to 30 positions expected to be made redundant, and transitioning elements of product development to outsourced contract research organisations.
One-off redundancy costs were estimated at approximately $800,000.
Recent Financial Performance
In its 1H FY26 results (for the half-year ended 31 December 2025), Genetic Signatures reported stable revenue of $8.7 million.
The company's net loss improved to $6.4 million, compared to $8.4 million in the prior corresponding period.
However, gross margin declined to 55.7% from 58.8% in 1H FY25, which the company attributed to higher consumables and raw material costs for respiratory test kits.
Genetic Signatures reported holding $29.9 million in cash and cash equivalents at 31 December 2025.
