Australia-based medical technology company, Next Science Limited (ASX Proposed: NXS) is all set to raise A$35 million via IPO and list on ASX in the next month. The company has already launched its offer on 15 March 2019 in which it has invited its investors to subscribe for 35 million shares, at an offer price of A$ 1.00 per share to raise A$35 million (before cost and expenses of the offer).
Next Science Limited is an emerging medical technology company which is mainly involved in the commercialization of its breakthrough technology for the treatment of biofilm-protected bacteria. The company is headquartered in Sydney, Australia, with a research and development centre in Florida, USA.
The Company’s technology is currently protected by 15 patents and 47 patent applications throughout the world. The Company’s proprietary Xbio technology is a non-toxic technology which is used in eradicating biofilm and biofilm-protected bacteria. This technology has been validated by extensive clinical testing, multiple FDA clearances and more than 70,000 patient treatments since 2017. Xbio technology is being sold in the US market to eliminate biofilm-protected bacteria in surgery and chronic wound care applications.
The proceeds from the Offer will be used to expand the company’s product development activities, for administration costs and working capital, and to pay for the costs of the Offer. The company is planning to launch four more Xbio-based products by the end of CY 2019.
The company is having distribution agreements with major multinationals 3M and Zimmer Biomet and has a pipeline of additional product development opportunities planned for the short and medium term. The company is expecting the sales of its acne treatment to start in Australia in the second half of 2019 under an agreement with Advanced Skin Technology.
Next Science’s business model is to further develop and commercialize its proprietary Xbio technology in a range of products for the treatment of biofilm-based infections. The Company generates revenues by offering its products for sale primarily through distribution partnerships with major health companies. The distribution through the third party provides Next Science with access to large global markets without incurring extensive sales and marketing expenditures. This allows Next Science to grow while maintaining a focus on ongoing research and development activities aimed at unlocking further healthcare products and market opportunities for its patented Xbio technology. Next Science intends to continue its strategy of sales through established distributors rather than directly market and sell its products itself.
As per the company’s prospectus, Next Science has the opportunity to grow organically by increasing market penetration of existing products in major therapeutic areas of the US market. The company also has the opportunity to grow geographically by expanding its sales into new markets outside the US.
In FY 2018, the company’ total income increased by 419% to US$2.8 million as compared to FY 2017, driven by the increased sales of Bactisure (surgical lavage), the acceleration of BlastX (wound gel) sales through the Next Science direct sales team based in the United States. As a result of an increase in revenue, the company’s gross profit in FY 2018 increased by 483% to US$2.5 million.
The IPO offer is going to close on 4 April 2019 with Shares expected to trade on ASX on 29 April 2019 under the ticker code NXS.
This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.
There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.
Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.
As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.