Why Vitrafy Life Sciences (ASX:VFY) has added a third US blood partner and reported $38.3 million of cash and term deposits in its September quarter update

Sonal Goyal

28 October 2026 04:40 PM AEDT

Why Vitrafy Life Sciences (ASX:VFY) has added a third US blood partner and reported $38.3 million of cash and term deposits in its September quarter update

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Key Highlights

Versiti Blood Health joined Vitalant and Hoxworth as a third US civilian blood partner, with partnerships reaching about 17 per cent of US civilian blood collection sites.
The company entered the US cell and gene therapy market through an agreement with Charter Medical, and reported no revenue from it.
Cash and term deposits were $38.3 million, with a funding runway of 7.9 quarters including $15 million of term deposits, or 4.8 quarters excluding them.

Vitrafy Life Sciences (ASX:VFY) reported in its quarterly activities report for the three months to 30 September 2026 that it has signed a third US civilian blood partner, Versiti Blood Health, announced on 30 September 2026. Versiti joins Vitalant and Hoxworth Blood Center. The company said its partnerships now reach about 17 per cent of US civilian blood collection sites, covering roughly 179 fixed-point sites that collect about 2.4 million units a year. Cash and term deposits stood at $38.3 million at quarter end.

Blood market progress

Under the Versiti arrangement, two Guardion devices will go to the partner's research institute in Milwaukee. Vitrafy said deployments to its partners are under way this quarter. Guardion is the company's device for freezing and storing blood products, and LifeChain is the accompanying software.

On the science side, the company said the US Army Institute of Surgical Research presented a Phase II in-vitro platelet study at the AABB 2026 meeting. The study reported 94.4 per cent mean post-thaw platelet recovery using a 3 per cent DMSO no-wash protocol. Animal health testing with IMV continues into the next quarter.

Cell and gene therapy entry

A 2 September 2026 agreement with Charter Medical marked Vitrafy's entry into the US cell and gene therapy market. Under the agreement, a Guardion device and LifeChain software will go to Charter Medical's Innovation Hub in North Carolina. The company did not report any revenue from the arrangement in the update.

Manufacturing, regulation and people

Vitrafy said it built nine Guardion devices during the quarter, with six more planned in the first half of FY27. Australian manufacturing of the first medical device fleet is expected from early 2027, and US manufacturing is targeted for the second half of 2027.

On regulation, the company said FDA medical device listing is on track by the end of the first half of FY27 in the activity report, while its outlook refers to the end of 2026. The two timeframes are broadly consistent but the wording differs.

The team has also changed. Vitrafy added a US-based chief operating officer and formed a US scientific advisory board, and a new chief financial officer, Jan Gielen, starts on 1 February 2027.

Cash position and funding runway

Net operating cash outflow for the quarter was $4.9 million, with cash expenditure of $5.7 million, or about $1.9 million a month. Receipts from customers were $0.1 million, grants were $0.3 million and interest income was $0.4 million. Cash and term deposits totalled $38.3 million at 30 September 2026.

The company estimated its funding runway at 7.9 quarters including $15 million of term deposits, or 4.8 quarters excluding them. It said cash costs are expected to rise over the rest of the year as validation, US commercial and manufacturing work ramps up. Payments to directors and related parties in the quarter totalled $214,000.

The prospectus use-of-funds table shows cumulative spending of $33.8 million against a budget of $41.4 million, with hardware development $3.9 million over its allocation.

Points to check in the filing

The Appendix 4C cash flow statement shows a net increase in cash of $26.1 million, which conflicts with the decline in cash reported elsewhere in the document, and the opening cash item is blank. Readers should treat the narrative figures above, taken from the activity report, as the company's stated position until the discrepancy is clarified.

Next milestones

The milestones set out by the company are the continued deployment of Guardion devices to blood partners this quarter, the build of six further devices in the first half of FY27, FDA device listing, Australian manufacturing of the first medical device fleet from early 2027, and the start of the new chief financial officer on 1 February 2027. US manufacturing is targeted for the second half of 2027.

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