Sydney-based reproductive biotech Memphasys (ASX: MEM) has secured a 12-month exclusive national supply agreement with Monash IVF Group (ASX: MVF) to deploy its Felix automated sperm separation system across all 22 of the IVF provider's clinics on mainland Australia.
The deal, described by Memphasys as the largest commercial arrangement it has entered into for the Felix device to date, will follow a three-month rollout phase at two initial sites before national deployment commences.
Commercial terms have not been disclosed but the company characterised the agreement as representing "significant value".
Monash IVF operates clinics across all mainland capital cities and reported 12,085 stimulated IVF cycles in FY2025, holding about 21 per cent of the Australian market.
Australia recorded more than 60,000 fresh IVF cycles annually, according to Memphasys, while separate data from the UNSW-compiled ANZARD report showed 103,556 total assisted reproductive technology treatment and laboratory-only cycles were performed in Australia in 2023.
The Felix system uses electrophoretic separation technology to automate sperm selection, a process traditionally performed manually by embryologists.
The device isolates higher-quality sperm based on membrane charge and motility, aiming to improve consistency and reduce operator variability in IVF laboratories.
The Monash IVF agreement caps a rapid sequence of commercial wins for Memphasys in recent months.
On 1 June, the company executed a two-year distribution agreement worth $530,000 with TMSC Vietnam for the Vietnamese market.
That deal followed a 1,000-cartridge order from distribution partner ITL across Middle East and North Africa markets in late May, which included HMC Qatar ordering a second Felix console.
Memphasys secured Therapeutic Goods Administration approval for the Felix system two months ahead of schedule in February this year, clearing the path for domestic sales.
The company's March 2026 quarterly report showed revenue exceeding $100,000 for the quarter, with about $1.4 million in multi-year contracted revenue locked in across European and MENA markets. Cash at the end of the quarter stood at $420,000.
Marjan Mikel, chair of Memphasys' commercialisation committee, says the Monash IVF agreement represents a pivotal commercial milestone for the company.
"Executing this agreement with Monash IVF is a significant commercial milestone for Memphasys, validating both the clinical value of Felix and our commercialisation strategy," says Mikel.
"Beyond the contracted revenue opportunity, Monash IVF provides a world-class reference customer and a strong platform to support broader adoption of Felix across Australia and international markets."
Memphasys says the Monash IVF deal delivers "clear revenue visibility" over the initial 12-month term.
"It establishes a significant value commitment over the initial term, representing the potential for baseline recurring revenue from a major institutional customer," says the company.
The Felix system generates revenue through both console placements and ongoing cartridge consumables, creating a recurring revenue stream as clinic usage scales.
Memphasys has flagged continued expansion across the Asia-Pacific and MENA regions alongside the domestic rollout.
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