Memphasys up +70% as sperm separation tech goes to Mid East, North Africa in 5Y deal

Reproductive biotech stock pioneering the ‘FELIX’ system for separating semen from sperm, Memphasys (ASX:MEM), has climbed +70% in early Monday trades (to 0.6cps) as the company inks a five-year exclusive distribution deal with a company in the Middle East and North Africa (MENA) region.

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The initial contract value comes in at a third of a mil ($325K) once the company acquires EU-specific regulatory greenlighting in the form of a CE Mark, which the European Union on its relevant webpage states is “required for products manufactured anywhere in the world that are then marketed in the EU.” Approval is expected within 12 months.

“The initial binding order upon CE Mark approval provides near-term revenue certainty, while the scale of the opportunity and ITL’s clinical expertise underpin the potential for long-term recurring revenues,” MEM CEO Dr. David Ali said of the deal.

“This partnership is a major milestone in our commercialisation strategy. ITL is the clear leader in IVF infrastructure and consumables in the Middle East, and their established relationships with more than 350 clinics provide an immediate pathway to market.”

For its part, by training medical staff attached to International Technical Legacy (ITL), the “regional leader in [MENA] IVF services,” the other part of today’s five-year deal, Memphasys expects it can foster a situation where its FELIX tech is rapidly normalised in the region. Through ITL, MEM expects exposure to some 353 clinics across 15 countries.

The five-year deal consists of an initial binding order for two years, which includes 10 FELIX consoles “free of charge.” Order volume and pricing will be reviewed after the first 24 months, and “additional cartridge volumes and consoles may be provided as required.”

All in all, if those FELIX consoles are free, it appears the $325K may be part of something to the effect of a licensing payment.

MEM last traded at 0.6cps.

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