The Future of Drug Testing? Fingerprint Tech From Intelligent Bio Solutions (NASDAQ:INBS) Shows Serious Promise

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Key Takeaways

• Intelligent Bio Solutions has a new way to test for drugs using fingerprints: it’s quick, portable, and doesn’t require urine cups or saliva swabs.
• With commercial traction in 24 countries and over 450 active accounts, INBS is now targeting the U.S. market, where over 55 million drug tests are performed annually.
• The business model is smart: A one-time device sale, but earns ongoing revenue from disposable cartridges making gross margins attractive and scalable revenue. 
• A successful FDA clearance in 2025 could unlock access to the $5B+ U.S. workplace drug testing market.
• There are some risks around cash burn, financing, and dilution for investors to consider.

To follow this analysis and see a visual representation of the valuation, check out the narrative here!   The Future of Drug Testing? Fingerprint Tech Shows Serious Promise

About Intelligent Bio Solutions

Intelligent Bio Solutions Inc. (NasdaqCM: INBS) is a U.S.-based medical tech company focused on non-invasive diagnostics. Its lead product, the Intelligent Fingerprinting Drug Screening System uses a small sweat sample from a fingertip to detect drugs like cannabis, cocaine, opioids, and more.

It’s already generating ~$3M in international revenue from sectors like construction, transport, policing, and drug treatment services.

Beyond drug testing, INBS is developing a biosensor platform for future diagnostic uses—such as glucose, hormone, and cancer marker detection—offering long-term upside beyond its current business.

INBS is headquartered in New York and operates as a subsidiary of Life Science Biosensor Diagnostics Pty Ltd.

Catalysts

First-of-its-kind U.S. entry (2025)

INBS submitted its FDA 510(k) application in December 2024. Approval expected by late 2025, this would enable a commercial launch in the U.S., the largest drug testing market globally. 

The U.S. Department of Transportation and other federal agencies regulate millions of tests annually, and entry into this market could meaningfully accelerate revenue. 

Global Adoption Is Already Underway

With over 450 active accounts across 24 countries, INBS has proven international demand. It’s adding new distributors in Europe, Asia-Pacific, and the Middle East, targeting safety-sensitive industries like mining, logistics, and law enforcement.

The growing pipeline of prospective customers and partnerships indicates a strong global appetite for modern drug testing methods.

Recurring Cartridge Revenue is Scaling

Cartridges now make up about 58% of revenue. Each fingerprint device sold leads to ongoing cartridge orders, providing a sticky, high-margin revenue stream. Reorder rates from existing customers are strong, demonstrating satisfaction. 

Product Expansion & IP Strength

The company is expanding its test panel to detect ketamine, tramadol, and other synthetic drugs. It also secured a U.S. patent on its cartridge design in early 2025, strengthening its intellectual property.

This expanded drug panel makes the product more versatile and valuable to customers dealing with a wider range of substances and the patent strengthens defensibility against competitors.

The fingerprint method, compared to urine samples or saliva tests, has many benefits which could entice more companies internationally to start using the product.

Optionality in biosensors

In the future, INBS could expand into diagnostics for chronic conditions (diabetes, cancer markers, and hormone monitoring) using the same core technology. These products are still pre-commercial, but could open up multi-billion-dollar markets and create a pipeline beyond drug testing.

Competitive Landscape

• Legacy Providers: LabCorp and Quest dominate urine testing but lack mobile, on-site solutions. INBS’s system offers faster, more hygienic workflows for companies seeking operational efficiency.
• Rapid Test Kits: OraSure and Abbott offer oral and urine kits. INBS’s fingerprint system is unique, less invasive, and faster to deploy.
• Smaller Peers: Psychemedics (hair testing) has ~$20M revenue and ~$14M market cap, suggesting niche drug testing businesses can persist but struggle to scale without strong product-market fit.

INBS’s differentiation is its patented fingerprint analysis, ease of use, and ability to deliver results quickly with no need for labs or bathrooms. No major player currently offers a competing fingerprint-based system.

Assumptions

U.S. FDA clearance in 2025

Our valuation below assumes regulatory approval and commercial rollout in the U.S. within the next 12–18 months. The 510(k) application was submitted in late 2024, and the company has indicated confidence based on existing international regulatory clearances. 

Entry into the U.S. is pivotal, given that over 55 million drug tests are performed annually, with the majority still using legacy urine-based systems.

Revenue growth to $30 million by 2030

Our estimates assume INBS scales globally and captures a tiny share (~0.15%) of the projected $20B global drug testing market. Current revenue is under $5M, so this assumes continued adoption by international accounts and a gradual ramp-up in the U.S. across 5–6 years. 

It implies a ~60% CAGR from FY2025 to FY2030, which is high, but achievable given low penetration and recurring cartridge sales.

Net profit margin of 15% by 2030

High cartridge gross margins (~59%) and operating leverage from scale support a 15% net margin once the business matures. Management is already working to streamline operations, and SG&A expenses will scale more slowly than revenue. 

We assume that most R&D costs stabilize and marketing costs are amortized over a growing client base.

Future earnings of $4.5 million (2030)

Applying the 15% margin to $30M in revenue yields ~$4.5M in net income. This would mark a significant turnaround from INBS’s FY2025 net loss of over $7.5M, and assumes consistent growth in device placements and cartridge reorders.

Valuation multiple of 20× earnings

Mid-cap diagnostics peers often trade at 18–25× P/E. Our 20× multiple on 2030 earnings reflects a blend of growth and scale and is conservative compared to high-growth diagnostic peers with successful commercialized technologies. 

It also factors in INBS’s small size and product concentration risk.

Capital raises increase share count to 15 million

The company had ~6.9M shares outstanding in early 2025 and has raised capital multiple times. This seems likely to continue, and we assume another ~$15–20M of dilution through 2026 to fund operations and commercialization. 

If shares are issued at gradually increasing prices as milestones are hit, this 15M share estimate is a realistic midpoint. There are risks associated with this though, and they will be covered below. 

Risks

Low cash balance, high dilution risk

• As of March 2025, INBS had just $2.8M in cash and lost $7.5M over the previous nine months.  The auditors issued a going concern warning , it’s likely to raise another $5–10M in the next year. 
• If the share price stays low, new funding could significantly dilute current shareholders.

FDA and Regulatory Uncertainty

• FDA clearance is not guaranteed. If additional data is requested or if the fingerprint modality is not accepted as equivalent to saliva or urine, U.S. entry could be delayed. 
• Regulatory timelines are also unpredictable and could affect investor sentiment or delay commercial ramp-up.

Adoption Curve in the U.S. May Be Slow

• Fingerprint testing is new, and employers may be cautious. Legal teams and HR departments will want to see proof before adopting. Early pilots and customer success stories will be crucial.

Reliance on a single core product

• All current revenue comes from fingerprint drug testing. While the biosensor platform has promise, it’s still early-stage and pre-revenue.
• If customer interest in fingerprinting stalls or better alternatives emerge, INBS’s growth path could be significantly impacted.

Competitive Market

• If the company receives FDA approval, larger firms (Abbott, Thermo Fisher) could enter this space or undercut pricing (of their legacy offerings) if fingerprint testing gains traction. 
• While patent protection certainly helps here, it isn’t a perfect moat, and competitors may build their own product without infringing on patents.

Volatility Comes with Micro-cap Territory

• At a ~$10M market cap, INBS is vulnerable to stock swings, low liquidity, and dependence on positive sentiment to access funding. 
• Daily trading volumes are low, which can exacerbate price movements from small news items or retail speculation. 

Conclusion

INBS is a high-risk, high-upside for investors who believe fingerprint drug testing could become a safer, faster standard in the workplace.

The company has a unique product, growing international traction, and a potential U.S. launch on the horizon, pending FDA approval. If it can successfully navigate regulatory and funding challenges, there's significant upside from today’s levels.

Execution and capital will be key. But if management delivers, INBS could be worth much more in the future.

For investors comfortable with early-stage risk, INBS may be worth watching closely.

Disclaimer

Jolt_Communications is an investor relations firm working with Intelligent Bio Solutions. Simply Wall St has no position in the company(s) mentioned. This narrative is general in nature and explores scenarios and estimates created by the author. This narrative does not reflect the opinions of Simply Wall St, and the views expressed are the opinion of the author alone, acting on their own behalf. These scenarios are not indicative of the company’s future performance and are exploratory in the ideas they cover. The fair value estimate is an estimation only, and does not constitute a recommendation to buy or sell a stock, and it do not take account of your objectives, or your financial situation. Note that the author’s analysis may not factor in the latest price-sensitive company announcements or qualitative material.

This article has been sponsored by Intelligent Bio Solutions (the Sponsor), which has paid Simply Wall St a fee for its publication on our platform and subsequent promotion. Any relationship between Simply Wall St and Intelligent Bio Solutions does not influence how we produce or moderate other content on this website. The Sponsor has a financial interest in the subject matter of this narrative. Simply Wall St has not independently verified any statements or projections made by the author, and does not endorse or guarantee the accuracy or completeness of the information provided.

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