Ilika plc (LON:IKA), a pioneer in solid-state battery technology, has announced that, further to its announcement on 16 January 2023, it has concluded contractual negotiations with Cirtec Medical, an industry-leading strategic outsourcing partner of complex medical devices including minimally invasive and active implantable devices, by signing a ten-year manufacturing licence for the production of the Stereax range of mm-scale batteries at Cirtec’s facility in Lowell, Massachusetts, U.S.
Headlines of the contractual relationship include:
· A ten-year licence to manufacture the Stereax range of products
· Exclusivity for Cirtec in the field of medical devices designed to drive full utilisation of Cirtec’s installed capacity
· Profit sharing during the initial period followed by royalty-bearing manufacturing aligned with industry norms, calculated on individual battery volumes
· Ilika to retain the cathode deposition process and back-end battery formation at their FAB facility in the UK as a sub-contract service to Cirtec
· Ilika to transfer some machine sets to the U.S. for Cirtec to operate on loan, to enable a quicker technology transfer and qualification process
Ilika will now focus on advanced technology development and IP licensing in support of Cirtec’s manufacturing and commercialisation activities. This partnership will reinforce Cirtec’s ongoing activities in system level miniaturisation for the medical device industry.
Ilika and Cirtec will now commence the technology transfer and certification process which will continue throughout the second half of 2023. The Cirtec commercial team will engage further with the Stereax customer list developed by Ilika and within their own customer base to expand the commercial opportunities now that the contractual terms of the agreement have been agreed.
Ilika’s revenue guidance for the next few years remains unchanged for now and the Company will provide an update on commercial progress at its half year results in January 2024.
Graeme Purdy, Ilika’s Chief Executive Officer, said: “We are delighted to be working with Cirtec for the commercialisation of Stereax. Cirtec has a very strong track record in the commercialisation of miniature medical devices and we believe this partnership is well-positioned to ensure a high quality, reliable and scalable supply of Stereax batteries to our customers.”
Brian Highley, Cirtec Medical Chief Executive Officer, commented: “We are excited by the prospect of adding Stereax battery technology to our portfolio of medical device solutions. Our 20 years of experience in the design, development and manufacture of medical devices positions Cirtec strongly to work with Ilika to bring its Stereax battery technology to market. We believe this collaboration fits right into our strengths and expands upon our mission to vertically integrate our capabilities to support our offerings to the implantable and wearable device markets.”
