Ilika PLC (AIM:IKA, OTCQX:ILIKF), a pioneer of solid-state battery technology, has inked a 10-year agreement with Cirtec Medical, a provider of complex medical devices.
The partnership will focus on the manufacturing and sale of Ilika's miniature Stereax solid-state batteries, including minimally invasive surgical tools and implants.
The agreement grants Cirtec exclusive rights to manufacture the Stereax range for the medical field, aiming to fully utilise Cirtec's manufacturing capacity in Lowell, Massachusetts.
The deal includes profit sharing in the initial stages, followed by royalties based on the number of batteries produced.
Ilika will maintain certain key processes in the UK but will also transfer some equipment to the US to speed up the technology transfer and qualification process. The partnership aims to enhance Cirtec's ongoing efforts in miniaturizing systems for the medical device industry.
The collaboration will kick off with a technology transfer and certification process, continuing through the latter half of 2023. Both companies will also work on expanding commercial opportunities with existing and potential customers.
Ilika's revenue forecast for the coming years remains the same, and further updates on commercial progress are expected in January 2024. This partnership marks a significant step in Ilika's growth strategy and strengthens its position in the medical device sector.
"We are delighted to be working with Cirtec for the commercialisation of Stereax," said Ilika chief executive Graeme Purdy.
"Cirtec has a very strong track record in the commercialisation of miniature medical devices and we believe this partnership is well-positioned to ensure a high quality, reliable and scalable supply of Stereax batteries to our customers."