TruScreen Group Limited announced 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 its 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.