Conversation 159:
This stock jumped 40% in a day. Is it just the beginning?
Memphasys Limited (ASX: MEM) specialises in biological separations for high value commercial applications.
In plain speak, that means they have a device that separates good sperm from bad, as part of the human IVF process.
THE FELIX SPERM SEPARATION DEVICE FROM MEMPHASYS.
The real revenue WILL come from the little cassette to the right says CEO.
To carry out the separation process the company has created a device called Felix.
According to Executive Chairman Alison Coutts, the cost of Felix itself is not the issue, with the real revenue stream in the cartridges used by Felix.
An IVF lab needs a new cartridge for each separation, and separation is a vital part of the IVF process.
Currently a standard IVF separation process takes about half an hour, cost between $80 and $100 and can be subject to human error.
Memphasys says it’s Felix device can do it in 6 to 8 minutes and the process is fully automated.
This is where I normally like to say that the company makes a faster, better and “cheaper” product.
But according to Coutts, the faster and better are so compelling, she believes Memphasys will be able to charge a premium for it’s cartridges on the current $80 to $100 separation cost.
According to published statistics, there are 2.3m live IVF cycles conducted annually and that should grow to 4m+ cycles by 2026.
Memphasys believes it could grab commercial sales in the order of 24% of that global IVF market.
Coutts high level of confidence stems from the feedback by several of the 13 IVF key opinion leaders that have been trialling Feliz for the past few months.
Based on that feedback, she expects sales to begin before the end of the year.
EMERGING TECH STEPS TO SUCCESS.
An Inside Market estimate of Memphasys’s journey to profitability would suggest it is at the end of stage 2.
SOME OF THE RECENT MARKET ANNOUNCEMENTS BY MEMPHASYS
Felix commercialisation update
Commercialising the Felix device company presentation
SHARE PRICE TREND
A SAMPLE OF RATINGS FOR MEMPHASYS
[CURRENT ON FRIDAY JULY 9TH 2020]
Morningstar Quantitative [algorithmic] Rating *
Valuation Rating
Undervalued
Fair Value Estimate0.067
Fair Value Percentage Diff 25.45%
LiquidityHigh
Research Report from Pitt Street Research
* The rating uses a machine-learning model to rate 22 times more funds than are rated by Morningstar analysts in EMEA and Asia.
The Quantitative Rating is an extension of the recently enhanced Morningstar Analyst RatingTM for funds (Analyst Rating), which provides an analyst's forward-looking assessment of a fund's ability to outperform its peer group or a relevant benchmark on a risk-adjusted basis over a full market cycle. Morningstar EMEA and Asia manager research analysts assign Analyst Ratings to approximately 1,260 open-end and exchange-traded funds and together with the Quantitative Rating, cover approximately 29,200 funds, representing nearly 105,000 share classes in EMEA and Asia.
#asx, #shares, #tech stocks, #technology, #innovation, #tech, #investment, #biotech, #data science, #science, #insidemarket