Will Healthcare Stocks Outperform in Near Future? A Lens over MedTech player: NXS

  • Dec 19, 2019 AEDT
  • Team Kalkine
Will Healthcare Stocks Outperform in Near Future? A Lens over MedTech player: NXS

Australian Securities Exchange ended the trading session in red on 19 December 2019, the S&P/ASX 200 index witnessed a decline of 18.3 points or 0.3% to settle at 6833.1 from its last close. On ASX or Australian Securities Exchange, the healthcare of Australia, represented as S&P/ASX 200 Health Care (Sector) index, also closed the session in red and settled at 41,668.2 with a dip of 463.7 points or 1.11% from the previous close.

However, amid uncertainty and oscillating stock market environment Australia’s health care system is burgeoning and stands out as one of the top sectors for investment purpose. Australian Health Care being a lucrative sector with a strong growth potential, catches investors’ attention as investors flock to health care share market in lure of earning huge money. Nevertheless, injecting funds in share market are not only challenging but at the same time tricky as well which requires oodles of patience, discipline together with vigilance, thorough research and deep knowledge of the stock market.

Ways to Invest in Health Care Stocks

Investor’s risk aversion is among the few variables that one should consider before pouring money in health care stocks, these include-

  • Gamut of diseases targeted,
  • Global patent coverage,
  • Patented technology used,
  • Market opportunity at a global scale,
  • Competitive advantage over its peers,
  • Number of regulatory approvals granted
  • Developments in clinical trials,
  • Future developmental plans,
  • Company’s business and revenue model and
  • Financial performance as well as stock performance.

Besides, demographic trends of the ageing population, monetary support from the government organizations, increase in chronic diseases also plays a role while cherry-picking stocks.

Health Care industry is all set for transformation in near future with the advent of modern technologies integrated into the health care domain, with an estimated global Digital Healthcare market size to grow at CAGR of ~30% surpassing US$500 billion by 2025. Technology trends expected to revolutionise the health care space includes of - robotics, artificial intelligence, genomics, 5G, wearable tech, regenerative medicine, smart-phone based applications to name a few. Recent government funding grants underpinning the ground-breaking medical and AI research projects worth approximately $22 million together with the ten years investment plans further reflects strong growth prospects of this sector.

Simply put, with tremendous potential applications, future growth prospects, and backed by government’s funding, Australia’s burgeoning health care research is on the verge of seeing a boom soon.

Now zooming lens over a Healthcare stock with impressive charter - MedTech player, Next Science, lets figure out its latest market leading moves.

Next Science Limited (ASX: NXS)

Next Science Limited (ASX: NXS) is a leading R&D company aimed at bringing anti-biofilm solutions to the market. This MedTech company was established in 2012 and is based in Sydney, Australia with one R&D centre located in Florida, USA. Next Science is focused on the development & continued commercialisation of its innovative, patented XbioTM technology designed to address one of the leading causes of antimicrobial resistance, bacterial biofilms, thereby, delivering the break-through solutions by reducing the impact of biofilm-based infections in human health.

The company owns 100% of the patent covered intellectual property relating to its Xbio technology, which stands as a unique, non-toxic technology with a demonstrated ability to eradicate both biofilms based as well as free-floating bacteria.

US distributor selected for Next Science’s TorrentX Wound Wash

The share price of this MedTech company was climbing up the ladder on 19th December 2019, on ASX, after the company revealed that a five-year exclusive distribution agreement for the sale of its TorrentX Wound Wash in the United States has been implemented. On 19 December 2019, by the closure of the trading session, Next Science stock was up 6.936% from its last close.

Next Science has appointed Tennessee based Triad Life Sciences Inc (TLS) for the promotion, marketing, distribution and selling of TorrentX Wound Wash in the U.S., paired with TLS’ new skin matrix product, a disruptive tissue substitute designed to revolutionise the skin substitute market in both chronic wounds and surgical care.

Under the terms and conditions of the agreement, it was mentioned that TLS must meet the stipulated performance criteria, to retain its exclusivity. TLS would sell the OTC version of TorrentX on a non-exclusive basis pending the FDA 510(k) clearances, expected in Q3 2020 post which the exclusive sales of the paired product would be started under the brand name TridentX.

TorrentX Wound Wash which is used for wound care for humans which includes both acute and post-acute settings in the healthcare system. Properties & Uses of TorrentX Wound Wash incorporating Xbio TM technology include-

Change of Directors’ Interest

As per the recent announcement on ASX dated 19 December 2019, Next Science provided an update on a change in one of its directors’ interest under listing rule 3.19A.2 and as agent for the director for the purposes of section 205G of the Corporations Act. The date of last notice was 25 September 2019 and nature of change remains direct.

It was reported that the company’s director Aileen Stockburger changed her interest in the company effective from 19 December 2019 by acquiring 7,977 securities at a value of $ 2.82 per share. The number of securities held prior to the change were 25,577 ordinary shares and 520,000 options to acquire ordinary shares) and the number of securities held after the change are 33,554 ordinary shares.

In another announcement on the same day, the company’s director Daniel Spira also changed his interest in the company effective from 19 December 2019 while acquiring below- 8,865 securities at a value of $2.82 per share. The number of securities held prior to the change were 27,864 ordinary shares and 1,300,000 options to acquire ordinary shares. The number of securities held after the change were 36,729 ordinary shares.

Next Science’s First Acne-Related patent Granted

In another announcement dated 13 December 2019, Next Science unveiled that its first acne-related patent has been granted by the US patent office, providing a unique commercialisation and licensing platform in acne treatment field.

Harnessing its unique biofilm disrupting XbioTM technology to treat chronic acne (a biofilm-based infection), Next Science created a novel formulation, which is able to disrupt the biofilm and restore the natural biome of the skin.

Next Science IP Holdings Pty Ltd, is the fully owned subsidiary of Next Science which now owns 22 granted patents by patent authorities in the U.S., Canada, Australia, Europe and Japan.

On the Stock front, NXS’ stock settled the day’s trade at $1.850, climbing up by 6.936% on 19 December 2019. The company’s market capitalisation stood at $310.05 million with 179.22 million outstanding shares. The 52 weeks high and low of the stock was noted at $4.730 and $1.24 with an average (year) volume of 209, 048.


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