Memphasys shares tumble 35pc after engineering flaw identified

Sperm sorter Memphasys (ASX:MEM) is down 40 per cent after a major setback.

The company’s Felix device can extract viable sperm from poor-quality samples, giving couples a chance of having children where it may otherwise be impossible.

The company claims Felix does this quicker and easier than current devices.

Memphasys planned to complete its verification and validation process by the end of March and start sales in the months thereafter.

But both time frames will now be extended, it says, after a certain engineering flaw was identified which would likely reduce the effectiveness of the system.

It stressed this was an engineering problem, rather than issue with the company’s core science, and it could be fixed.

“Memphays is clearly disappointed that this issue has arisen, especially as it came so late in the validation process,” said Memphasys boss Alison Coutts.

“However, that we were able to uncover the issue is a testament to the robustness of our verification and validation process.”

While Coutts said the company was working on the issue “as expeditiously as possible” no specific time frame was given as to when it would be resolved.

Shares plunge

Memphasys ASX shares fell by as much as 35 per cent this morning.

Memphasys’ fall came after a good run for its shares in the preceding 6 months as commercialisation appeared on the horizon.

It also signed a collaboration with Newcastle University to develop new products in niche reproductive biology applications.

Memphasys (ASX:MEM) share price chart