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ARCHER MATERIALS LTD (AXE) - Quantum Leaps and Biotech Breakthroughs
Quantum computing breakthroughs and revolutionary medical diagnostics might sound like distant future technologies, but Archer Materials is bringing them to life right now. Our fascinating conversation with Dr Simon Ruffell, recently promoted from CTO to CEO, reveals how this Australian semiconductor company is simultaneously advancing two groundbreaking technologies with global implications.
Archer's quantum computing program has reached several crucial technical milestones, including extended spin lifetimes in carbon-based quantum films and successful coupling to superconducting resonators. These achievements might sound complex, but they represent fundamental building blocks toward creating functional qubits - the essential components of quantum computers.
Meanwhile, Archer's biochip program is moving rapidly toward practical applications. Their breakthrough technology can detect potassium levels in blood samples - crucial for monitoring chronic kidney disease. Recent achievements include integrating sophisticated graphene sensors with silicon circuitry and dramatically improving measurement consistency from 15% variability down to just 1.5%. By the end of 2024, they aim to demonstrate a prototype that can analyse blood samples in minutes, transitioning from laboratory demonstrations to tangible, functional hardware.
With $15 million in cash reserves, strong technical progress on both fronts, and a leadership team bringing experience from technology giants like Microsoft and Applied Materials, Archer Materials represents a fascinating intersection of cutting-edge science and commercial potential. Subscribe now to hear more stories of Australian innovation making global impacts!
Andrew Musgrave Host
Welcome to ASX Briefs, where we speak with the innovators and executives driving Australia's listed companies towards global impact. And today we're joined by Dr Simon Ruffell, the CEO of Archer Materials, a semiconductor company pioneering breakthroughs in quantum technology and medical diagnostics. Simon, thanks for joining me today and welcome to the ASX Briefs podcast.
Simon Ruffell Guest
Yep, good to be here, thanks.
Andrew Musgrave Host
Now, Simon, for investors that may be unfamiliar with Archer Materials, can you just provide a brief overview of the company?
Simon Ruffell Guest
Yep. So, Archer Materials is a deep tech company. We're working in the semiconductor and quantum space. We have two core technologies. One of those is our biochip technology for sensing diseases and treatment of those. The other technology stream is based on quantum computing and other technologies based around that.
Andrew Musgrave Host
Now your team recently extended spin lifetimes in the carbon-based quantum films and observed strong coupling to a superconducting resonator, a significant achievement. So how does this move the needle towards functional qubit development?
Simon Ruffell Guest
Yeah, so what we did there, that sounds pretty technical and probably doesn't mean much to most people, but what we're doing I keep talking about these building blocks that we need to sort of develop to build into a qubit technology, which is then the building block of a quantum computer.
So what you described there, Andrew, was one of those building blocks, and in that case what we're doing is a qubit is a thing that has a state that's up or down, a bit like a bit in a conventional computer, and the way you control those is by pulsing, delivering pulses of microwave, a bit like your microwave oven, essentially, and that coupling to a resonator, which sounds pretty technical, is the first step there into being able to precisely deliver microwaves to that qubit material to send it into an up or down state, and then that's just one part of it.
That's how you control the qubit. Later on, what we needed to be doing is developing a way to then read what the qubit state is sometime later, and that's what the team is working on now, and we're looking at four or five milestones that we have to get through. Like that, we've completed some of them, some of them are in progress now, some we're aiming for the end of the year and early next year and we're looking at the middle of next calendar year to actually have that qubit and demonstrate it, and that's going to be really exciting for us because what that then allows us to do is validate a lot of the claims that Archer has been making about our qubit material for years, and we're expecting some real technical entitlements in the qubit versus other technologies, which will hopefully attract some attention from other major players in the field as well.
Andrew Musgrave Host
Okay, and with spin coherence and reproducibility improving, when do you foresee demonstrating full readout and control on silicon substrates?
Simon Ruffell Guest
Yeah, so that's yep, same answer, really. Middle of next year, so June, July 2026. We're expecting, or we're targeting, to be able to have a silicon wafer with our qubit built on there and demonstrating the control and readout and also the enhancements or technical entitlements that come with that.
Andrew Musgrave Host
And the company has now successfully integrated gFET sensors with silicon readout circuitry. So how does this influence the path to a working at-home blood potassium monitor?
Simon Ruffell Guest
So that's essentially the same answer again, it's one of the building blocks towards having this at-home sensor. So, you know, I suppose what I want to say is, over the last year or two, we've been presenting PowerPoints on what we expect to be doing in terms of the sensing and then, more specifically, the potassium sensor for chronic kidney disease. This milestone that we reported recently was a way of essentially miniaturizing. Right now we have our chips in a lab and there's a benchtop system and it's pretty big and that's how we do the readout. This is a key step into miniaturizing that down to a single chip or a couple of chips that go into the biosensor device.
And again, what we're aiming to do is have something real and tangible by the end of this calendar year that does, you know, it'll take a sample of blood, it will do the measurements and it will read out the results within a few minutes. And you know, for us that's super important. That's going to be a key milestone in terms of whether we have to raise capital in the next 18 months to two years. It's going to be a real, tangible thing that we can show to potential investors or commercial partners, and part of that is that the recent integration of the gFET sensing chip with the control electronics.
Andrew Musgrave Host
Okay, and you've reduced biochip variability from 15% to 1.5%, so what's next in the testing pipeline and how close are you to human sample trials?
Simon Ruffell Guest
Yeah. So that accuracy improvement, again it's a step towards a working prototype at the end of the year. We know really clearly what the measurement accuracy specifications are for a sensor like ours that we're building because there's incumbent lab measurements that do the same thing, and we're miniaturizing that lab process down onto a chip, into a handheld sensor, so that first repeatability improvement feeds into that and the goal is at the end of the year to be meeting the, the accuracy requirements that that are imposed on this test and what labs currently deliver. And the follow up to that then is you know, we have, so we have a technical roadmap to get there and that'll feed into the again the prototype system that will be a real tangible demonstration of what we're doing.
Andrew Musgrave Host
OK, touching on the financials, the company has a strong cash position of in excess of $15 million with no debt so how are you thinking about capital allocation between R&D, manufacturing, and go-to-market strategies?
Simon Ruffell Guest
That's a good question. So, if you look at the timeline for if you take the biochip, for example what we want to do is have a first demonstrated device by the end of the year, middle of next year. We want a real prototype device that could actually be used in clinical trials. So up until because, if you look until the middle of next year, that's still going to be predominantly R&D spend, but then we are going to be looking to put this system into clinical trials so we can go through the regulatory process. There's a ramp up of spend at that point right, that process is pretty time consuming but also very expensive, and you know, what we then have, though, is a year or two of clinical trials and going through the regulatory process where we can, in the background, we can do two things we can ramp up our manufacturing strategy for the product for when it's ready after regulatory approval, and we can also start building up second and third generation applications that follow on behind this potassium sensing, because, of course, we'd be very silly just to back a one-trick pony for the biochip. So, at least for the next two years, there's going to be an R&D spend. There's going to be a ramp-up in terms of the development, both in terms of making prototype devices that we manufacture at low volume, but also the push through the regulatory and clinical trials process, and everyone can see the runway there. At that point then we need to raise capital. But as long as we plan for success and we're planning for those milestones to be reached the first, the tangible prototype. Second, to be going through clinical trials I don't really see a problem in raising more capital to push that product through to the market a year or so later.
And the same with quantum the spend will probably be as we have spent. It's a more longer term speculative project compared to the biochip program, so there's not going to be a certain step change in spend there that will continue on. But the demonstration of a qubit in the middle of next year will be a key, a key milestone in terms of attracting attention from commercial partners or a catalyst for capital raise around the quantum as well.
Andrew Musgrave Host
Okay, and just looking at more of a macro level, you transitioned from CTO to CEO earlier this year, bringing a deep technical background from both Microsoft and Applied Materials. So, what are your priorities as you lead Archer through this commercial pivot?
Simon Ruffell Guest
Yeah so that’s a good description. I’ve got a deep technical background, so you know I'm on a learning curve as CEO as well, if I'm going to be very honest. But what I see as critical is essentially transitioning the company from PowerPoint presentations on what we want to do to real demonstrators of what we actually are doing and achieving something there, because we need, you know, several things need to happen. We need some serious commercial partnerships with the biochip. We need to demonstrate real entitlements and validate what we've been telling the market about our quantum technology. So, my priorities are sort of moving from PowerPoint slides through to actual, real hardware that's tangible and demonstrates some of these key results, and using that then to catalyze engaging with commercial partners and capital raising.
Andrew Musgrave Host
Okay, Simon. So just to wrap things up, what are the major milestones investors can look out for over the remainder of this year and heading into 2026?
Simon Ruffell Guest
Super simple, I mean, I think I've covered them. But for the biochip program, at the end of this year we want a bench top demonstrator that shows you can take a pinprick of human blood, put it on our sensor and it'll read back your potassium levels and then that'll evolve in 2026 to a real prototype and clinical trial. For the quantum program, we want to demonstrate a working qubit in the middle of 2026. And we've got you know, we're laying out sort of three or four key milestones leading up to that, but it's as simple as that, basically.
Andrew Musgrave Host
Okay, Simon. Well, thanks for your time today. It's been great to chat and we look forward to further updates from Archer Materials in the upcoming months.
Simon Ruffell Guest
All right, thank you, Andrew.
Andrew Musgrave Host
That concludes this episode of ASX Briefs. Don't forget to subscribe and we look forward to catching you on our next episode.