Kromek has signed multi-year agreements with Siemens Healthineers (Siemens Medical Solutions USA, Inc.) to support the production of advanced medical imaging technology. The agreements, worth $37.5 million (£29.5 million) over four years, cover licensing, technical support, and the supply of detector materials used in medical scans.

Kromek has signed multi-year agreements with Siemens Healthineers (Siemens Medical Solutions USA, Inc.) to support the production of advanced medical imaging technology. The agreements, worth $37.5 million (£29.5 million) over four years, cover licensing, technical support, and the supply of detector materials used in medical scans.

Under the deal, Kromek will transfer 15 of its existing 174 furnaces used for producing detector materials and provide Siemens Healthineers with expertise and intellectual property (IP) for manufacturing. In return, Kromek will receive payments in four instalments, with the first $25 million (£19.7 million) arriving this financial year. Additionally, Kromek will supply detector tiles under a separate contract, which is expected to make a significant contribution to revenue from the second year onwards.

As part of the agreements, Kromek will continue to manufacture detector tiles while allowing Siemens Healthineers to develop its own production capabilities over time. All licensing is on a non-exclusive basis, meaning Kromek remains free to work with other companies in the medical imaging sector.

The company will use the initial $25 million (£19.7 million) payment to support the delivery of the agreements, reduce debt, and strengthen its financial position. As a result, Kromek expects to become profitable in the current financial year, with earnings significantly ahead of market expectations. The company also anticipates sustained revenue growth beyond 2025, further enhancing its long-term profitability.

Kromek remains the largest independent producer of cadmium zinc telluride (CZT), a key material in medical imaging. It will continue supplying CZT for SPECT and CT scanners, using its remaining 159 furnaces to meet demand across the industry.

Arnab Basu (pcitured), Chief Executive Officer of Kromek, said:

“We are delighted to have entered into these agreements with Siemens Healthineers, a move that underscores Kromek’s position as the largest independent producer of CZT and CZT-based detectors. We both have an ongoing commitment to innovation that is critical for developing superior detector solutions that play a vital role in the early detection of serious illnesses. Both Siemens Healthineers and Kromek are aligned in our vision to enhance healthcare through technological advancements, and we eagerly anticipate collaborating to bring this vision to fruition.

“The initial $25.0 million (£19.7 million) payment will be used to support the delivery of various milestones under the agreements, significantly reduce our debt and strengthen our balance sheet, ultimately enhancing our operational capabilities. These significant agreements enable Kromek to report FY 2025 profit ahead of market expectations and lay the groundwork for further growth in revenues and sustainable profitability beyond that period. These agreements also enable Kromek to continue its leadership in CZT production for SPECT and CT markets, as we maintain the flexibility to explore further collaborations with other OEMs in advanced imaging.”