ASX Health Stocks: Memphasys jumps on legal settlement after flaw with its Felix sperm-separating device
Health & Biotech
Health & Biotech
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Biotech company Memphasys (ASX:MEM) was top of the health stocks today, rising 6.78% after announcing it had reached a legal settlement agreement with its engineering and design partner Hydrix.
The agreement centred around an engineering flaw with the sperm separating Felix device – for IVF procedures – which was identified in the latter stages of the engineering validation process.
Unfortunately, the flaw contributed to a substantial delay in commercial sales for MEM, but is has now been rectified.
And the companies have reached an agreement where $500,000 (plus GST) re-imbursement for costs incurred by Memphasys to be paid as a cash payment of $125,000 (plus GST) per quarter over four quarters to Memphasys.
Plus, Hydrix will issue 1 million shares to Memphasys.
And in support of the partnership, Memohasys will issue 3 million options to Hydrix, with a two-year expiry and with a conversion price of 10c per option.
“While the engineering issue, which contributed to a substantial delay to initial commercial sales process of Felix, was disappointing, I am pleased we have reached settlement with Hydrix and that both parties remain committed to the partnership in bringing the Felix device into commercialisation,” Memphasys Executive Chairman Alison Coutts said.
Verification activities on the upgraded Felix device were completed by 30 June 2021. Final validation activities were expected to be completed by 30 September 2021, but have been delayed due to the impact of COVID-19.
The final tests are expected to be completed once COVID-19 lockdown restrictions are relaxed.
Other health stocks with news out today.
Truscreen (ASX:TRU) +7.14%
Cervical screening product developer Truscreen was up 5.35% today off the back of its annual report, detailing a 36% jump in sales growth and the rollout of its product in China, Eastern Europe and Africa.
TruScreen’s large-scale Chinese Obstetricians & Gynaecologists Association (COGA) evaluation concluded in July, with the panel expected to meet before the end of 2021 to review the results and provide their recommendation on TruScreen as a primary screening tool.
The company has been working towards becoming a domestic device in China, with domestic product registration expected to open new sales and distribution channels throughout the company.
In Africa, Zimbabwe’s National Aids Council’s (NAC) TruScreen Pilot Project is underway, with 20 operators trained for the pilot and 8 devices rolled out in the region.
The company is targeted low- and middle-income countries for its real time cervical cancer screening technology – particularly those where there is no large-scale cervical cancer screening programs and infrastructure are in place, such as China, Mexico, Africa, Russia, and India.
Neuren was up 5.96% after announcing it submitted an investigational new drug (IND) application to the US Food and Drug Administration (FDA) for its NNZ-2591 treatment for Angelman syndrome.
The company also submitted an ethics committee application to conduct its planned Phase 2 clinical trial at three hospitals in Australia and plans to start the trial after approval of both applications.
The company is also completing IND applications for NNZ-2591 to treat Phelan-McDermid syndrome and Pitt Hopkins syndrome.
“Filing the first IND application for NNZ-2591 is a very important milestone in our plan to develop NNZ-2591 for multiple serious neurological conditions,” Neuren CEO Jon Pilcher said.
“We are eager to start the Phase 2 trial in Angelman syndrome, which we hope will demonstrate the potential for NNZ-2591 to provide an urgently needed treatment option.”
Immutep (ASX:IMM) +5.66%
The company’s share price jumped 5.66% today after it announced the last patient has been enrolled and safely dosed in its Stage 2 of Part B of its Phase II TACTI-002 study into patients with non-small cell lung cancer (NSCLC).
A total of 154 patients out of up to 183 are now participating in TACTI- 002 at 19 clinical sites across Australia, Europe, the UK and US.
The company expects to report further data from TACTI-002 at a scientific conference in calendar year 2021 or early calendar year 2022.