What is Morgan’s updated view on this red hot ASX healthcare stock?

It has been a red hot 2026 for ASX healthcare stock Vitrafy Life Sciences Ltd (ASX:VFY). 

Vitrafy researches and develops cryopreservation technology. The company offers cryopreservation devices, thawing devices, packaging, and software platform.

In 2026, it has risen an impressive 107%. 

This included a 13% jump last Friday after the company released an announcement to the ASX. 

What did the company announce?

On Friday, the healthcare company announced the successful completion of the Phase II in-vitro study with United States Army Institute of Surgical Research (part of the Defense Health Agency) (“USAISR”). 

According to the release, excellent results were achieved using the Vitrafy cryopreservation ecosystem across all tested protocols when compared to existing regulatory and quality guidelines for platelet use.

Building upon the Phase I results, the Phase II USAISR in-vitro results highlight that all protocols tested via Vitrafy’s cryopreservation ecosystem outperform the existing regulatory and quality guidelines currently set for the use of platelets

What does this all mean?

The company tested different ways of freezing and thawing platelets (blood components used to stop bleeding).

All methods passed the minimum medical standards needed for human use.

One method in particular – using 3% DMSO without needing a “wash” step – performed best.

Normally frozen platelets are difficult and expensive to prepare after thawing.

Vitrafy’s “no-wash” process means hospitals, ambulances, military units, or remote clinics could potentially thaw and use platelets quickly without special lab equipment or trained technicians.

That could make it easier to store emergency blood supplies for disasters, trauma care, rural medicine, and battlefield injuries.

They achieved 94% platelet recovery after thawing, which means most platelets survived the freezing process and still functioned properly.

They also maintained strong clotting ability, which is critical in trauma situations.

Investors were seemingly pleased with these results, as the ASX healthcare stock rose 13% last Friday following the release. 

What is Morgan’s take?

Following this announcement, the team at Morgans provided updated guidance on this ASX healthcare stock. 

It said Vitrafy has released final Phase II in-vitro platelet results from USAISR, with all three cryopreservation protocols exceeding fresh-platelet quality benchmarks. 

The headline result was 94% post-thaw recovery using the 3% DMSO no-wash protocol, well ahead of the FDA/AABB (~75%) and European (~50%) thresholds. The study is independently authored by the US Army across 20 donors and 60+ samples at commercial volumes, delivering on a core IPO commitment made at listing in November 2024. 

No FDA-approved no-wash frozen platelet product exists commercially in the US, positioning Vitrafy to address a genuine category gap. Shares trading up strongly from the $1.20 YTD lows, and +27% on the 2024 IPO price.

This ASX healthcare stock closed trading last week at $2.65. 

Current targets from brokers are hovering around the $3.00 mark. 

The post What is Morgan’s updated view on this red hot ASX healthcare stock? appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.