TRU Signs Five Year Manufacturing Agreement for SUS Supply

NZX/ASX Announcement

1 September 2022

TruScreen Signs Five Year Manufacturing Agreement for critical Supply of SUS

Key Highlights
• TruScreen has signed a five-year manufacturing agreement with Zapco International Limited for the critical supply of Single Use Sensors (SUS)
• The agreement confirms TruScreen’s confidence in growing demand for TruScreen cervical cancer screening medical device.
• Agreement will facilitate closer cooperation between the parties to affect product design and manufacturing optimisation and efficiencies to reduce the cost of SUS and improve TruScreen’s market competitiveness.

TruScreen Group Limited (NZX/ASX: TRU) (‘TruScreen’ or ‘the Company’) is pleased to announce that it has executed a five-year manufacturing contract with its current critical supplier, Zapco International Limited, for the manufacture and supply of Single Use Sensors.

Zapco has been manufacturing for TruScreen since the launch of the TruScreen cervical cancer screening device. The new contract signals a closer working relationship of the two companies to collaborate on initiatives to affect design and cost improvements for the benefit of our patients, distributors and the market generally.

TruScreen has identified a number of initiatives that will improve manufacturing yield and process optimisations which when completed will result in a meaningful reduction in the SUS cost.
The contract provides for Zapco to implement identified cost improvement initiatives and to pass these benefits to the Company. The Company continues to own all Intellectual Property associated with the product and any developments, modifications and enhancements or improvements.

The contract contains other conditions which are standard for a supply contract of this nature.

TruScreen CEO Juliet Hull said: “the SUS usage is a key consumable component impacting on the financial performance of TruScreen. With SUS demand growing, year on year from greater placement of our screening devices in the market and expected to be well over 200,000 units this year, any improvements in manufacturing yield and process can make a material contribution to our bottom line.
We look forward to continue working with our strategic supplier, Zapco to optimise our processes for the benefit of both parties.”

This announcement has been approved by the Board.

-ENDS-

For more information, visit www.truscreen.com or contact:
Juliet Hull
Chief Executive Officer
[email protected]
Guy Robertson
Chief Financial Officer
[email protected]
Julia Maguire
Investor Relations
[email protected]
+61 2 8999 3699

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Announcement PDF