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If you haven’t yet encountered Felix, the sperm-sorting device turning heads in reproductive labs from Kobe to Coimbatore, you might be missing one of the more compelling emerging plays on the ASX right now. Memphasys (ASX: MEM), the small-cap biotech behind the technology, is laser-focused on transforming this quietly powerful gadget into the next global standard for IVF sperm preparation. And judging by recent developments, the company might just be on the cusp of something much bigger.

Felix System

Let’s be clear: this isn’t your garden-variety medtech hopeful touting hypothetical pipelines. Memphasys has stepped out of the development phase and into the throes of commercial execution. Felix, the company's flagship electrophoresis-based sperm selection system, is already generating real orders from high-volume fertility clinics in Japan and India. And it's doing so while awaiting the CE Mark that would unlock another 28 markets including Europe and Australia.

Felix: Simple, Scalable, and Surprisingly Disruptive

The Felix system isn’t just faster (6 minutes versus up to an hour for traditional density gradient methods), it’s gentler, fully automated, and built for the IVF age. As global sperm quality continues to decline, and male-factor infertility contributes to roughly half of all fertility issues, Felix's ability to deliver high-integrity sperm with less DNA damage has caught the attention of IVF clinicians worldwide.

The business model is classic razor-and-blade: the console is a one-off install, but clinics must purchase single-use cartridges for every patient cycle. With each cartridge priced between $80–$150 and targeted gross margins over 60%, it’s a model primed for scaling. Memphasys expects individual clinics to generate $100k–$300k in annual Felix revenues.

Traction in Asia’s Fertility Powerhouses

In Japan - the world’s largest IVF market - Memphasys recently secured a repeat order from the prestigious Nishitan ART Clinic Group. The 200-cartridge reorder valued at $24,000 isn’t groundbreaking in dollars alone, but in significance. Nishitan runs 21,000 IVF cycles per year. It’s early proof that once Felix is in the door, it stays.

Over in India, where IVF demand is ballooning and CE Mark approval looms, Memphasys has locked in a commercial supply agreement with Andro Diagnostics. The Year 1 minimum commitment? 1,800 cartridges, growing 50% in Year 2. And that’s just from a single partner group covering 200 clinics.

Strategic Shift: Cutting the Middleman

What’s especially notable is Memphasys’ pivot to a go-direct sales model. Unlike the traditional distribution-heavy approach, this gives the company tighter control over pricing, customer relationships, and training. It also allows faster feedback loops, which are crucial for adoption in regulated clinical environments. The strategy is already yielding early wins across Japan and India, with negotiations underway in New Zealand and the Middle East. A $390,000 minimum order in MENA is already contracted, pending regulatory green lights.

Spearheading this commercial transition is Marjan Mikel, recently appointed Chair of Commercialisation. With over two decades of health tech execution experience, Mikel brings a no-nonsense growth mindset to the rollout. His mandate? Build scalable partnerships and deliver cartridge volumes - not just promises.

A Scientific Edge, Steered by the Best

Distinguished Laureate Professor John Aitken

Underpinning Felix’s scientific heft is none other than Distinguished Laureate Professor John Aitken, globally regarded as the authority on sperm biology. With over 650 publications and a track record that includes shaping IVF protocols used worldwide, Aitken isn’t just a name on the letterhead - he’s the architect of the Felix system itself. His ongoing role in product development and clinical engagement lends enormous credibility, particularly when courting key opinion leaders in the conservative world of assisted reproduction.

Capital, Costs, and the Coming CE Catalyst

Financially, Memphasys has tightened its belt with a 40% reduction in operating expenses. Cash burn remains an issue—as is typical for companies at this stage—but a $0.84 million placement and a $1.12 million rights issue provide runway through to CE Mark approval, expected in early 2026.

The company is also scaling manufacturing and driving cartridge production costs below $40 - a key milestone in strengthening margins and self-sufficiency as sales volumes climb.

The Bigger Picture

There’s a lot to be said for timing. As assisted reproduction rates rise globally and the fertility tech market surges toward an $85 billion valuation by 2034, demand for smarter, faster, and safer sperm selection systems will only intensify. Felix, with its patented platform, respected scientific origins, and early traction in major IVF markets, is uniquely placed to fill that void.

Of course, risks remain. Regulatory hurdles, operational scaling, and clinical adoption timelines can all stretch longer than expected. But the pieces are falling into place, and for Memphasys, 2026 could be the year Felix stops being a niche innovation and starts becoming standard protocol.

For investors watching the IVF gold rush unfold, the Memphasys story might just be worth a closer look - not because it’s the flashiest biotech on the block, but because it’s quietly doing the hard yards where it counts: in the lab, in the clinic, and increasingly, on the balance sheet.

KTEK Systems Pty Ltd, a specialist supplier of airframes and electromechanical assemblies for military-grade drones, is preparing to list on the ASX as geopolitical tensions and technological shifts continue to fuel unprecedented growth in the global unmanned aerial vehicle (UAV) market.

With operations spanning Australia, Israel, Portugal, the Netherlands and planned soon the USA, KTEK positions itself as a Tier-2 supplier to Tier-1 defence primes, leveraging an asset-light manufacturing model to produce mission-critical components for next-generation UAV platforms. The IPO will seek to raise between $6 million and $7.5 million, with a post-money market capitalisation of up to approximately $23.5 million.

A Scalable Model for a Rapidly Expanding Market

Founded in 2019 by CEO Dekel Keisar, a mechanical engineer and former IDF Major, KTEK has developed a distributed manufacturing model it calls the “Cordless Factory”. By outsourcing physical production to certified aerospace manufacturing partners, while retaining in-house control of engineering, quality assurance, and logistics, KTEK delivers complex sub-systems without the overhead typically associated with defence manufacturing.

The company focuses on full-turnkey (FTK) delivery of electromechanical UAV assemblies - ranging from composite airframes and control surfaces to avionics trays, power distribution modules, landing gear mechanisms, and military-spec ground systems.

All products are built to stringent aerospace and military standards, including AS9100-aligned quality management systems.

This modular, scalable approach is designed to support multiple concurrent projects while maintaining engineering rigour and compliance, allowing the company to respond rapidly to demand across multiple jurisdictions.

Exposure to Tier-1 Defence Programs

KTEK’s customer base includes global defence contractors such as UVision and Elbit Systems - both of which have secured significant UAV-related contracts in recent quarters. In particular, a largeUAV customer recently won a circa US$1billion contract, for which KTEK supplies key airframe components and integrated sub-systems.

While revenue attribution is indirect, KTEK is expected to benefit materially from this contract, given its ongoing role as a manufacturing partner. The company is also engaged across several other customers, including maritime surveillance UAVs, multi-domain ISR packages, and anti-drone solutions awarded in both European and Israeli markets.

In total, KTEK customers have secured over A$2.5 billion in drone-related contracts since 2023, providing a strong pipeline of ongoing and future production opportunities.

Financial Performance and IPO Structure

KTEK reports revenue of A$5.5 million for the 2025 financial year, with a customer order book valued at A$9.2 million to be fulfilled by the second half of 2026. The company claims a compound annual growth rate exceeding 100% since 2023.

As part of its IPO, KTEK Australia will acquire its Israeli operations, consolidating both entities under the ASX-listed parent. The capital raising will take place at an enterprise value of approximately $16 million, with shares issued at a price supporting a total market capitalisation of between $22 million and $23.5 million, depending on the final amount raised.

A pre-IPO convertible note of $1.5 million has already been executed, converting at the greater of 10 cents or a 50% discount to the IPO price.

CPS Capital’s Nathan Barbarich is acting as Corporate Adviser and Lead Manager to the IPO.

Industry Context: UAVs and Global Defence Spending

The timing of KTEK’s listing coincides with a period of extraordinary growth in the military UAV sector. The global market for defence drones is forecast to grow at a compound annual rate of 17.3% through 2030, underpinned by increased military modernisation, geopolitical volatility, and the evolving nature of warfare.

UAVs now play a central role not only in reconnaissance but also in direct kinetic operations, particularly through loitering munitions and autonomous strike platforms. Conflicts such as the Ukraine war have demonstrated the tactical efficiency and cost advantages of drone deployments, reshaping defence strategies globally.

Total global defence expenditure reached US$2.72 trillion in 2024, with all NATO members expected to meet the 2% GDP spending target by 2025 and a collective goal of 5% by 2035 recently proposed. The United States alone is forecast to exceed US$1 trillion in defence spending by FY2026.

Within this environment, demand for UAVs, counter-drone systems, and supporting infrastructure continues to grow rapidly. KTEK’s positioning as a supplier of high-complexity sub-systems offers leveraged exposure to these procurement cycles without the development or regulatory burden of full-platform manufacturing.

Governance and Board Composition

The company is chaired by Howard Digby, a former regional managing director of The Economist Group and senior executive at IBM and Adobe. He is currently a non-executive director at Elsight (ASX:ELS), which develops secure communication technology for defence and mobility applications.

Non-executive director Winton Willesee brings over 25 years of capital markets experience and previously served on the board of Droneshield (ASX:DRO), a listed counter-drone technology firm. The board's experience spans aerospace engineering, capital markets, and corporate governance, providing a strong foundation for the proposed listing.

Risks and Outlook

As with many Tier-2 defence suppliers, KTEK’s financial outcomes are closely linked to the success and continuity of its key customers. While the company benefits from long development and integration cycles that support supplier retention, its revenues are ultimately derivative of program allocations by prime contractors.

Execution risk, geopolitical factors, regulatory requirements, and technology shifts also represent ongoing challenges. Nonetheless, KTEK’s demonstrated capability, established customer relationships, and scalable production model position it well to participate in the structural growth of the global UAV industry.

For investors seeking targeted exposure to the high-growth defence drone sector—particularly in military sub-systems and dual-use applications—KTEK offers a direct channel at a relatively early stage of commercial scaling.

Mesenchymal stromal cells (MSCs) are often described as the body’s natural repair system - remarkable cells capable of calming inflammation, modulating immune responses and regenerating damaged tissue. For decades, scientists have seen them as the foundation for an entirely new class of regenerative medicine. Yet one challenge has always stood in the way of allowing MSCs to realise their full potential: how to make enough of them, consistently, to treat patients at scale.

 Melbourne-based Cynata Therapeutics (ASX: CYP) has got a solution for that problem. Its Cymerus™ platform can produce an essentially limitless supply of consistent, potent MSCs from a single blood donation - a breakthrough that could redefine how cell therapies are manufactured and delivered.

Image: Cynata’s iPSC-MSCs

The company is now approaching the most important period in its history - with two landmark clinical trial readouts fast approaching in osteoarthritis and acute graft-versus-host disease (aGvHD). And unlike most companies heading into late-stage data, Cynata does so with a powerful advantage - it already has proven in-human efficacy from earlier clinical trials.

 “We’ve already shown our Cymerus™ MSCs can deliver meaningful efficacy and survival benefits in patients with life-threatening diseases,” said Cynata CEO Dr Kilian Kelly. “Heading into two major trials with that data behind us gives us a much higher degree of confidence than is typical at this stage of biotech development.”

Why Cynata is Different

 Traditional MSC manufacturing relies on collecting appropriate donor tissue, isolating MSCs, and then growing those cells in the lab (known as “culture expansion”). But MSCs are naturally scarce, and when they go through extensive culture expansion, their potency declines. That means therapies made from these donor-derived MSCs face problems of supply, consistency, and declining effectiveness.

Cynata’s Cymerus™ process bypasses all of that. By reprogramming cells originally derived from a single healthy donor into induced pluripotent stem cells (iPSCs) - effectively “master cells” - the company can generate MSCs over and over again, forever. Cynata’s process doesn’t start with the search for new donors – it starts with lifting a vial of high-quality iPSCs out of the freezer. The result is a stable, scalable, pharmaceutical-grade source of regenerative cells ready for off-the-shelf use across multiple diseases

It’s a manufacturing breakthrough that gives Cynata a commanding position in a fast-maturing field. More than 1,800 MSC clinical trials have been initiated worldwide, but few have reached late-stage development. Cynata is now the first company worldwide to see a Phase 3 program using iPSC-derived MSCs come to conclusion- an achievement that could set a new global benchmark for the field.

Why Cynata should be on your watchlist

Cynata’s pipeline is focused on high-value indications where inflammation and immune dysfunction play central roles. The company’s two most advanced programs - Osteoarthritis (CYP-004) and Acute Graft-versus-Host Disease (aGvHD, CYP-001) - are both nearing major data readouts in the coming 6–9 months.

Its Phase 3 osteoarthritis trial, led by the University of Sydney and funded by the NHMRC, is investigating whether Cymerus™ MSCs can relieve knee pain, improve mobility, and slow cartilage loss - outcomes that could transform treatment for more than 600 million people worldwide who currently have no disease-modifying option.

Meanwhile, the company’s Phase 2 aGvHD trial represents another major inflection point. Acute GvHD is a life-threatening complication of bone marrow transplants, where the donor’s immune cells attack the recipient’s tissues. First line steroid treatments fail in about half of cases, leaving survival rates as low as 20% after two years.

Cynata’s earlier Phase 1 clinical trial in humans provided compelling evidence that it could address this need. In patients with severe, steroid-resistant aGvHD, 87% improved by at least one grade, 53% achieved complete resolution of disease, and 60% were still alive two years later, with no serious treatment-related adverse events. The successful outcomes of this trial were published in two articles in a world-leading scientific journal Nature Medicine.

For investors, this prior in-human efficacy data represents a potential de-risking factor. Most biotechnology companies enter trials without clear evidence that their therapy works in humans, meaning the probability of success - and therefore valuation — is much lower. Cynata’s data gives it a rare advantage: it already knows its cells can achieve clinical benefit and do so safely. In a sector where proof of human efficacy is often the difference between speculation and validation, Cynata stands out as one of the few biotechs entering a pivotal trial with real-world evidence already in hand.

“Being only 6–9 months away from two major clinical trial readouts places Cynata in an exciting position,” Dr Kelly said. “While there is never zero risk in clinical trials, heading into these results with excellent efficacy results obtained in Cynata’s phase 1 clinical trials in steroid-resistant aGvHD and diabetic foot ulcers is a great advantage.”

In a bold pivot towards the bleeding edge of neuro-oncology diagnostics, Perth-based TrivarX (ASX: TRI) has inked a deal to acquire the intellectual property behind a novel brain imaging platform, Stabl-Im™, from biotech outfit Nucleics Pty Ltd. The technology, which promises to detect brain tumours earlier and more safely than current MRI methods, could be a genuine game-changer in the clinical management of brain metastases - a condition that afflicts up to one in five adult cancer patients.

The Stabl-Im platform uses stable isotope labelling to flag replicating cells — a biological hallmark of tumour growth absent in healthy adult brain tissue. The kicker? It can be visualised using standard MRI equipment, meaning no radioactive tracers or invasive biopsies. This is particularly significant, given current MRI-based surveillance can only detect tumours once they've reached 2-3mm in size, often too late for meaningful intervention.

As TrivarX Chairman David Trimboli put it: “This transaction marks an important evolution for TrivarX, firmly strengthening our position in the neurological diagnostics sector, while providing exposure to the fast-growing brain cancer imaging market.”

Trimboli's optimism isn’t just PR fluff. The global neuro-oncology diagnostics market is tipped to hit US$2.5 billion by 2030, and the brain metastases treatment segment could balloon to US$8.8 billion by 2035. In a field where survival is measured in weeks post-diagnosis, the ability to detect tumours earlier - and more safely - could materially change patient outcomes.

Dr Daniel Tillett

Backing the science is biotech heavyweight Dr Daniel Tillett, founder and CEO of Nucleics and also the Managing Director of Race Oncology (ASX: RAC). Dr Tillett isn't just licensing out his IP; he’s cornerstoning a $4.2 million placement with a $500,000 personal investment. That kind of skin in the game rarely goes unnoticed in biotech circles.

“We developed the Stabl-Im IP with the vision to transform how clinicians can detect and monitor metastatic brain tumours - safely, non-invasively, and earlier than ever before,” said Dr Tillett. “TrivarX's experience and commitment to diagnostics and precision neuro-medicine make them the ideal partner.”

The $4.2 million placement, priced at $0.008 per share - a 30% discount to the 15-day VWAP - will fund the transaction and accelerate clinical development. Directors have also thrown in $200,000 (subject to shareholder approval), adding a further layer of conviction. The capital raise is structured in two tranches, with Perth-based JP Equity Partners taking the lead manager role.

Clinical work is scheduled to begin in earnest, with manufacturing and regulatory pre-submissions planned for the US and EU. A Phase 1 trial, aimed at assessing safety and imaging precision, is pencilled in for calendar year 2026. If successful, performance milestones will trigger the issue of up to 750 million shares a significant kicker for Nucleics, tied to trial outcomes.

Importantly, TrivarX isn’t throwing the rest of its toolkit out with the petri dish. Stabl-Im complements its existing work in mental health diagnostics, including MEB-001 and its AI-powered ECG platform for detecting Major Depressive Episodes. With a foot firmly in both neurological and psychiatric territory, the company appears to be positioning itself as a diagnostics platform play - not just a one-trick biotech pony.

For a small-cap, TRI’s aspirations are big, and the backing of a figure like Dr Tillett lends the endeavour a degree of credibility. That said, the path from IP acquisition to clinical success is long, expensive, and littered with risk. But for investors keen on frontier medtech with global upside, this is one ticker worth watching - particularly as the Phase 1 trial looms.

The real test, as always, will be in the clinic. If Stabl-Im lives up to its billing, TrivarX could find itself not just diagnosing brain tumours earlier - but rewriting the rules of engagement for neuro-oncology altogether.

Adisyn Limited (ASX: AI1) has been spotlighted in a new Pitt Street Research report for its pioneering work developing graphene-based interconnects designed to overcome the physical and performance limits of copper in advanced computer chips.

The research note, “Solving a Major Semiconductor Bottleneck,” released on 16 October 2025, reaffirms a valuation of A$0.29 per share, with analysts saying Adisyn’s breakthrough could help sustain Moore’s Law by enabling faster, smaller, and more energy-efficient semiconductor design.

Copper’s Limits Spark Graphene Race

As transistors in integrated circuits shrink below 10 nanometres, the copper interconnects that link them face rapidly increasing resistivity, energy loss, and overheating. This has created a major technological bottleneck for chipmakers trying to advance to sub-5nm nodes.

Adisyn’s wholly owned subsidiary 2D Generation is at the forefront of solving this issue through its low-temperature Atomic Layer Deposition (ALD) graphene technology, which enables high-quality graphene growth at temperatures compatible with existing semiconductor manufacturing.

“Graphene interconnects can deliver faster signal transmission, reduced power consumption, and lower heat generation — three of the biggest challenges facing next-generation chip design,” the Pitt Street Research report notes.

Dual ALD Systems Accelerate Research Progress

According to the company’s August 2025 R&D update, Adisyn has now commissioned two Beneq TFS 200 ALD systems - one installed at its Israeli R&D centre and another leased through Tel Aviv University’s Nano Center.

Beneq TFS 200 ALD system

These systems allow Adisyn’s team to test multiple precursors and reaction conditions simultaneously, advancing the refinement of its proprietary graphene deposition “recipe.” The company’s Phase One program, now underway, is focused on precursor testing, plasma cleaning, graphene growth, annealing, and continuous optimisation - all aimed at validating repeatability and scalability.

This research will continue through early 2026, culminating in the production of a Demo Prototype to prove that graphene can outperform copper in semiconductor applications.

Strong Team and Global Research Collaborations

Pitt Street Research’s report emphasises the calibre of Adisyn’s international leadership and partnerships as a key differentiator.

The graphene development program is led by semiconductor veteran Kevin Crofton (former Lam Research and SPTS Technologies CEO), Arye Kohavi (founder of Water-Gen), and Miri Kish Dagan, one of Israel’s leading R&D executives.

Adisyn is collaborating with some of the most respected institutions and programs in global semiconductor research, including:

• imec (Belgium), for simulation and validation of graphene deposition processes;

• Tel Aviv University, for advanced characterisation and ALD access; and

• ConnectingChips, an EU-led consortium involving NVIDIA, NXP, Applied Materials, and Valeo, under the EU Chips Act initiative.

A Trillion-Dollar Opportunity

The Pitt Street Research analysis places Adisyn’s work within a booming global semiconductor market projected to exceed US$1 trillion by 2030, up from US$600 billion today.

As artificial intelligence, data centres, and 6G communications demand increasingly powerful chips, materials like graphene could become essential to maintaining performance gains and efficiency improvements.

“Adisyn’s low-temperature graphene ALD process could be the enabling technology that allows sub-2nm chip production,” the report concludes, adding that success could “trigger M&A interest from major equipment manufacturers such as Lam Research, ASM International, or Applied Materials”.

Valuation and Upcoming Milestones

Pitt Street Research reaffirmed its A$0.29 per share valuation, composed of A$0.22 for 2D Generation and A$0.07 for Adisyn’s legacy IT services business, and identified several upcoming catalysts for investors:

• Ongoing graphene deposition progress reports;

• imec and ConnectingChips collaboration updates;

• Delivery of the 2026 Demo Prototype; and

• Potential commercial partnerships or licensing opportunities.

Redefining Semiconductor Innovation

By addressing one of the semiconductor industry’s most persistent engineering limits, Adisyn’s research could mark a pivotal moment for global chip design.

As Pitt Street Research notes, “If Adisyn succeeds in demonstrating a full proof of concept, it will have solved a fundamental bottleneck in the chip industry.”

With two operational ALD systems, high-level global partnerships, and a clear technical roadmap toward a 2026 prototype, Adisyn’s graphene interconnect program is positioning the ASX-listed company at the forefront of the next generation of semiconductor innovation.

To access the full research report click HERE