Ilika secures purchase order for Stereax electrodes

(Sharecast News) - Ilika said on Wednesday that it has secured its first revenue-generating purchase order for Stereax electrodes from Cirtec Medical, marking the commercial transition of the companies' strategic partnership after two years of development work. The AIM-traded solid-state battery specialist said the order covered supply of the conductive electrodes used in its Stereax M300 batteries and followed the successful delivery of prototype units in December.

It said the electrodes would support Cirtec's ramp-up of Stereax M300 production in the US, targeting applications across active implantable medical devices, including implanted sensors, neurostimulators, orthopaedic and orthodontic devices and ophthalmology applications.

Ilika said the order represented its entry into the commercial phase for its medical battery technology.

Under an agreement announced in August 2023, Ilika retained specific battery manufacturing processes at its UK facility as a service to Cirtec, while primary manufacturing of the Stereax M300 takes place at Cirtec's Massachusetts site.

With early batteries delivered late last year, the relationship had now progressed to Cirtec purchasing production quantities of electrodes from Ilika.

The Stereax M300 batteries were currently being evaluated by 21 customers.

"This marks an important transition from the earlier stages of technology transfer to commercial production coordinated from our facility here in the US," said Shawn Martin, vice president at Cirtec Medical.

Ilika chief executive Graeme Purdy said the receipt of the first commercial electrode order validated the "strong market momentum" building behind the Stereax technology.

"This revenue-generating phase of our partnership with Cirtec positions us to support their manufacturing scale-up while accelerating product integration across numerous high-value medical device applications," he said.

At 1458 GMT, shares in Ilika were up 2.33% at 37.35p.

Reporting by Josh White for Sharecast.com.