Renalytix Plc Share News (RENX)

(Sharecast News) - Renalytix said in an update on Tuesday that it was making progress in expanding the use of KidneyIntelX.dkd across the United States, reporting growing testing volumes, new state coverage and advancing commercial partnerships ahead of its annual general meeting in London.

The AIM-traded company's prognostic blood test, the only FDA-approved and Medicare-reimbursed test for early-stage chronic kidney disease risk assessment, was now generating revenue from four core states - Florida, Texas, New York and, most recently, Arizona.

Executive chairman Julian Baines said the first orders in Arizona included tests from one of the largest nephrology practices in the US.

He emphasised that, while direct sales growth is encouraging, the company's primary strategy is to scale test adoption through major business development agreements with large healthcare systems.

Renalytix signed a definitive agreement in September with Tempus AI, the Nasdaq-listed diagnostics and AI group, which Baines said has "an established network of healthcare institutions already utilising its precision medicine solutions."

He added that early engagement with Tempus and MVP Health Care reinforced the company's belief that its partnership-led model would "deliver long-term value for shareholders," despite lengthy implementation processes common across major US providers.

Renalytix said it had also narrowed potential partners for its next electronic health record integration and was working with several large healthcare systems expected to generate "meaningful testing volumes" over time.

The company said it was increasingly using data analytics to identify physicians managing high numbers of eligible patients, helping target commercial resources where uptake prospects are strongest.

Renalytix added that it had started transitioning to a new laboratory facility, a move expected to expand testing capacity and reduce operating costs over the next five years.

Baines said the company was now focused on converting ongoing discussions into contracted relationships, expanding EHR integrations and accelerating test volumes.

While acknowledging that timing of commercial outcomes "remains difficult to predict," he said the board was confident that the company's current initiatives "position the company well for sustainable revenue growth, increased operating leverage, and long-term value creation for shareholders."

Renalytix said it would provide a trading update for the six months to 31 December by the end of January.

At 1243 GMT, shares in Renalytix were down 7.14% at 6.27p.

Reporting by Josh White for Sharecast.com.