# Ilika hits Stereax production milestone with Cirtec, Cavendish

- Link: https://www.directorstalkinterviews.com/ilika-hits-stereax-production-milestone-with-cirtec-cavendish/4121212781
- Published: 2025-08-20T07:35:56+01:00
- Author: Anthony Fox

**[Ilika Plc](https://www.directorstalkinterviews.com/company/ilika-plc/ika.l)**(
[LON:IKA](https://www.directorstalkinterviews.com/company/ilika-plc/ika.l)) has 
reached a meaningful point in the commercial journey of its Stereax micro batteries.
According to Cavendish, Ilika and strategic partner Cirtec Medical have now completed
process qualification for the Stereax M300 production line at Cirtec’s Lowell, Massachusetts
facility. This step activates the ten year manufacturing agreement signed in August
2023, with first deliveries to lead customers targeted for 2025, in line with prior
expectations.

Cavendish frames the update as a substantial de risking event. The commissioning
phase in January 2025 was a vital precursor, and the latest qualification work represents
the final technical validation before production. The line encompasses sophisticated
layer deposition, alignment and patterning systems designed for medical grade micro
batteries, a reminder of the complexity involved in transferring such a unique product
to volume manufacture.

Importantly, the broker expects maiden commercial revenues from Stereax in FY26.
With process qualification complete, Cirtec is expected to achieve initial product
sales before the end of the calendar year, securing Ilika’s first commercial income
from Stereax in the current financial year.

Cavendish also points to the strategic fit with Cirtec. The US partner is moving
towards a vertically integrated position in Advanced Implanted Medical Devices, 
where battery size, reliability and integration are critical. The broker believes
Stereax can give Cirtec a technical edge for both own brand and white label offerings,
enabling new products and customer wins over many years.

Ilika’s equity story in numbers remains anchored by a discounted cash flow target
price of 130p, versus a 40.0p share price at the time of the note, implying material
upside on the broker’s analysis. Ilika’s net cash position is reported at £10.1m,
with 191.7m shares in issue.

Directly quoting Research Analyst John‑Marc Bunce, who authored the note, “Today’s
news is a positive milestone, demonstrating that Stereax is on track with expectations,
and we therefore maintain our forecasts and 130p DCF-based valuation.”

## FY and outlook highlights

 * Process qualification completed for Stereax M300 at Cirtec’s Lowell facility,
   clearing the final technical step before production, with the ten year manufacturing
   agreement now active.
 * Initial deliveries targeted for 2025, consistent with prior guidance, with initial
   product sales anticipated before year end to underpin first Stereax revenues 
   in FY26.
 * Cavendish maintains forecasts and a 130p DCF based valuation, versus a 40.0p 
   share price at the time of publication, with net cash of £10.1m.
 * Key estimates, revenue of £1.1m for FY25A, rising to £2.8m FY26E and £6.1m FY27E,
   reflecting the expected Stereax ramp and programme activity.
 * Balance sheet snapshot, gross cash of £8.0m reported for FY25A, projected £5.5m
   FY26E.

From an operational standpoint, the update reduces the risk around manufacturing
yield and quality thresholds that can slow new product introductions in regulated
medical applications. With Cirtec publicly engaged and aligned, and Ilika positioned
as the battery technology licensor, the groundwork appears set for a measured commercialisation
path that can support Ilika’s medium term growth profile.

On a Final Note, Ilika’s progress at Cirtec marks a clear step from development 
to qualifying production, a prerequisite for sustainable commercial traction in 
medical devices. Cavendish’s maintained target price and expectations reflect that
this milestone keeps the Stereax roadmap on track, while upcoming first shipments
and early revenues will be the next tangible markers to watch.

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