Memphasys Limited (ASX: MEM) has announced a significant milestone in its expansion strategy by entering a five-year commercial supply agreement with Centro Fertilita Assistita (CFA) Italia, an established in vitro fertilization (IVF) group based in Naples, Italy. The agreement involves the purchase and deployment of the FelixTM automated sperm isolation system across CFA Italia’s IVF clinics and its broader distribution network throughout Italy.
As part of the initial phase, CFA Italia has placed an order for 500 FelixTM cartridges, valued at approximately A$62,500. This revenue is expected to be recognized in the current quarter, with cash receipts anticipated in the following quarter. This early order, secured prior to the activation of the CE Mark, highlights the strong clinical interest fostered through Memphasys’ direct engagement model and serves as initial validation for both the FelixTM system and the company’s commercialization strategy.
Strategic Expansion into the European Market
This agreement marks the first commercial contract for Memphasys in mainland Europe, illustrating a key step in the company’s broader rollout strategy. The initial order reflects the effectiveness of direct commercial engagement and underscores the increasing demand for the FelixTM system ahead of anticipated CE Mark approval.
Italy is a prominent center for assisted reproductive technology, with nearly 97,000 assisted reproductive technology procedures performed in 2022 alone. IVF cycles constitute the largest share of these procedures, demonstrating robust clinical throughput and consistent patient demand. The clinics within CFA’s commercial network perform thousands of IVF cycles annually, presenting a substantial recurring market opportunity for the FelixTM system.
CFA Italia has established relationships with a wide network of IVF clinics across Italy. This partnership will facilitate rapid market penetration and revenue growth as CFA actively engages these clinics to promote and sell the FelixTM system.
Future Outlook and Company Strategy
The large and sophisticated IVF market in Italy provides a solid platform for Memphasys’s expansion, particularly after the anticipated approval of the CE Mark in early 2026. The agreement establishes a committed supply pathway and offers scalability, enhancing the potential for increased adoption of the FelixTM system across various clinics.
Marjan Mikel, Non-Executive Director and Chair of Commercialisation at Memphasys, stated, “Europe is a core pillar of our global FelixTM commercialization strategy. This agreement provides an immediate entry point into the Italian IVF market and positions the company to accelerate adoption through a well-established clinic network.”
Memphasys continues to advance its operational and commercial objectives, aiming for further significant milestones in the upcoming quarters as it executes its growth strategy. The FelixTM system, a patented bioseparation technology, is designed to isolate the most viable sperm cells for human assisted reproduction. By utilizing electrophoresis and size-exclusion membranes, FelixTM offers a rapid and standardized sperm selection process, enhancing sperm quality while minimizing laboratory time.
The company’s strategy focuses on building contracted sales through both direct and distribution-led channels while scaling production to improve margins. Memphasys aims to establish the FelixTM system as a new global standard in sperm preparation for assisted reproductive technology procedures.
For more information, visit www.memphasys.com. The FelixTM system is a registered trademark of Memphasys Limited. All rights reserved.
