In the world of biotech, timing is everything, and for Memphasys Limited (ASX: MEM), the clock is ticking as it gears up to unlock the commercial potential of its flagship Felix™ System. The reproductive biotech company is turning to the market for a $2 million capital injection, which will come through a $1 million placement and a matching Share Purchase Plan (SPP).
Memphasys will be leaning on its investors to help it cross the finish line with this raise. The placement has already attracted interest from a range of sophisticated and professional investors, while existing shareholders will get their turn at the plate through the SPP. So, what’s the game plan with all this cash?
Felix™: The Fertility Game-Changer
The centrepiece of Memphasys’ fundraising push is the finalisation of its Felix™ System clinical trial, currently being run in Australia. Felix™ is a nifty little device designed to separate sperm from a semen sample in a quick, efficient, and gentle manner – crucial for assisted reproductive technologies (ART) like in vitro fertilisation (IVF).
If all goes to plan, Memphasys could have some seriously happy investors in the land of the rising sun. Positive early results from a trial in Japan last year, conducted at the Reproduction Clinic Osaka, suggest that Felix™ might have a leg up on older sperm preparation methods like Density Gradient Centrifugation (DGC) and SwimUp. In plain English, it did a better job in most clinical measures.
But it’s not just Japan that’s buzzing about Felix™. In 2023, Memphasys saw a major breakthrough in India, where 10 successful live births were recorded using the Felix™ System. These results, presented at the ASPIRE 2023 Congress in Adelaide, followed a previously reported live birth earlier in the year. What makes these outcomes particularly remarkable is that all couples treated had previously failed IVF cycles, with the males showing high levels of sperm DNA damage—a key contributor to male infertility. Felix™’s ability to improve sperm selection in these challenging cases is a game-changer for couples struggling to conceive.
These results are turning heads in the global fertility community, and the Japanese clinical trial is expected to build even more momentum for Felix™’s roll-out. Memphasys’ exclusive distribution agreement with Vitrolife Japan KK, a subsidiary of Sweden’s Vitrolife Group, positions it well to capitalise on growing demand.
A Horse in the Race
But it’s not just humans on Memphasys’ radar. The company is keen to expand its Felix™ technology into the world of equine fertility—a lucrative market in its own right. Some of the funds raised will be pumped into an equine fertility study, where the goal is to establish Felix™ as the gold standard for sperm selection in horses. Commercial sales are anticipated within 12 months, and Memphasys is hopeful that Felix™ can work its magic in the stud farms as well as it has in IVF clinics.
Oxidative Stress: A New Frontier
If that wasn’t enough, Memphasys is also looking to develop a new prototype system to measure oxidative stress. Oxidative stress, which is a fancy term for the cellular damage caused by free radicals, plays a big role in reproductive performance. Memphasys, along with its partner Klean Gene, wants to create a baseline measurement system for oxidative stress, particularly in the animal industry. The goal is to help breeders figure out when oxidative stress is impacting fertility and how they can address it.
A Safety Net: Peters Investments Stays the Course
Meanwhile, Memphasys’ longtime supporter Peters Investments Pty Ltd has extended the maturity of its convertible note to 30 June 2025. This provides the company with much-needed breathing room while it works to hit key milestones.
CEO Dr David Ali is bullish about the company’s future: “We believe that by securing these funds, together with the recent funds provided by Andrew Goodall and the conditional extension of the Peters Investments Convertible Notes, provides the company with the necessary balance sheet comfort to reach tangible milestones that will unlock strategic partner and commercial opportunities for the company.”
While Memphasys’ journey to commercialisation hasn’t been a straight line, this latest raise could put it on the verge of significant breakthroughs in both human and animal fertility markets. Investors will be keeping a close eye on those upcoming clinical results from Japan and India, with the Felix™ System poised to tackle male infertility head-on.
