How Will TruScreen’s NZ$4m Capital Raise Fuel Its Global Screening Expansion?

Financial Overview and Market Performance

TruScreen Group Limited (NZX/ASX, TRU), a specialist in AI-enabled cervical cancer screening technology, has released its unaudited interim results for the six months ended 30 September 2025. The company reported a 17% decline in product sales to NZ$860,000 compared to the prior period, primarily due to the deferral of NZ$200,000 in revenues to the second half of the financial year. This timing shift contributed to an increased operating loss of NZ$1.36 million, up from NZ$1.13 million in the previous corresponding period, which also factored in costs related to a capital raise completed in mid-2025.

Despite the shortfall in first-half sales, TruScreen reaffirmed its full-year revenue guidance of NZ$2.8 million, underpinned by strong ongoing sales in China and the launch of new public screening programs in emerging markets. The company ended the period with NZ$2.2 million in cash and cash equivalents, bolstered by a successful NZ$4 million capital raise aimed at sustaining operations until achieving monthly cash flow positivity by late FY2026.

Strategic Market Expansion and Partnerships

China remains TruScreen’s cornerstone market, with consumable sales of its Single Use Sensor (SUS) units reaching 80,000 in the first half, despite an 11% dip attributed to manufacturing delays. The company’s distributor, Beijing Siweixiangtai Tech Ltd., continues to deepen penetration across key provinces and diversify channels into traditional Chinese medicine hospitals and private luxury clinics. Notably, a significant 15,000-patient clinical trial report by the Chinese Obstetricians and Gynecologists Association is pending publication, promising to enhance TruScreen’s clinical credibility both domestically and internationally.

Beyond China, TruScreen is making headway in several high-potential markets. Vietnam’s five-year public screening program, targeting 260,000 women, is set to commence in the second half of FY2026 following administrative delays. Zimbabwe’s screening program is also poised to restart, aiming to screen 20,000 women this financial year after completing product re-validation. In Uzbekistan, a 500-patient pilot project has been initiated as a precursor to potential nationwide adoption, reflecting the company’s strategic focus on government-backed public health initiatives.

New distributor appointments in India and South Africa mark important steps in TruScreen’s global footprint expansion. In India, Renovate Biologicals Pvt Ltd has begun distributing TruScreen’s AI-enabled system, targeting a dominant market share within five years. South Africa’s distributor, AIR, is preparing for product registration and anticipates first revenues in late FY2026, tapping into a market with one of the highest cervical cancer incidence rates globally.

Corporate Developments and Outlook

TruScreen’s strategic alliance with Hangzhou Dalton Biosciences Ltd aims to broaden its HPV product range and enhance market access, particularly in populous countries like India and Indonesia. The company’s entry into Indonesia, with its vast and underserved screening population, underscores the portability and accessibility advantages of TruScreen’s technology in regions lacking extensive laboratory infrastructure.

On the corporate front, the company welcomed Ms Christine Pears to its board, succeeding Ms Juliet Hull, bringing extensive experience in indirect channel distribution and governance. The capital raise completed in June and July 2025, involving both a share purchase plan and placement, has fortified the company’s balance sheet and supports its operational runway.

Looking ahead, TruScreen acknowledges that first-half performance fell short of expectations due to timing issues but remains optimistic about the second half. The company anticipates that the ramp-up of public screening programs and expanded distribution channels will drive revenue growth and ultimately reward investors for their continued support.