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A new tie-up will extract value from this chemical stock

Simon Thompson: A new major agreement with the German medical giant brings the undervaluation of its IP into sharp focus
A new tie-up will extract value from this chemical stockPublished on January 30, 2025
  • Major four-year agreement worth $37.5mn
  • Business now sustainably profitable
  • Share price rallies 27 per cent

Sedgefield-based Kromek (KMK:6.75p) has signed a company transformational agreement with Siemens Medical Solutions that has propelled the radiation detection technology specialist into sustainable profit and significantly strengthened its balance sheet.

Under the four-year agreement, Kromek will transfer 15 of its 174 furnaces for cadmium zinc telluride (CZT) production to Siemens Medical. The company will also provide the German group with all know-how, IP and related services (licensed on a non-exclusive basis) for next-generation single-photon emission CZT-based SPECT-detector applications in advanced medical imaging.

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