Thin-form battery developer Ilika (IKA) has signed a ten-year deal with Cirtec Medical, an industry-leading strategic outsourcing partner of complex medical devices.
The deal will see the production of the Stereax range of mm-scale batteries at Cirtec's facility in the US. The contract also includes exclusivity for Cirtec in the field of medical devices designed to drive full utilisation of Cirtec's installed manufacturing capacity, with profit sharing during the initial period followed by royalty-bearing manufacturing calculated on individual battery volumes.
Ilika will now sharpen its focus on advanced technology development and IP licensing, backed by Cirtec's manufacturing and commercialisation activities. In addition, the partnership will strengthen Cirtec's position in medical device miniaturisation which could lead to further commercial opportunities.
Technology transfer and certification process will kick off in H2 2023.
Ilika's revenue guidance for the next few years remains unchanged for now, but the company said it 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."
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This is a huge milestone for Ilika, which now can ramp up manufacturing and commercialisation of its disruptive Stereax batteries, set apart from bulky and non-rechargeable batteries currently used in medical devices.
Solid-state batteries use a solid electrolyte that negates the need for the bulkier metal packaging commonly associated with traditional batteries. They also have added benefits such as quick charge time, often around 10 minutes, which gets around the issue of patients neglecting to recharge batteries.
Ilika employs this disruptive technology within its Stereax solid state batteries using energy-dense chemistry and patterning with a high capacity that can easily be recharged. The Stereax M300 is under a millimeter high, safe and moisture resistant, making it ideal for use in medical applications.
On the financial front, Ilika said in its results for FY23 that total revenue stood at £0.8m, with its EBITDA loss improving to £7.0m in 2023, compared to £6.4m in 2022. As of April 30 2023, Ilika holds £15.9m in cash compared to £23.4m in 2022.
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