The Next Science (ASX:NXS) share price is up 8% today. Here’s why

The Next Science Ltd (ASX: NXS) share price is racing higher today following the company’s fourth-quarter trading update for 2020.
The post The Next Science (ASX:NXS) share price is up 8% today. Here’s why appeared first on The Motley Fool Australia. –

A doctor or medical expert in COVID-19 protection flexes his muscle, indicating growth or strong share price movement in ASX medical, biotech and health companies

The Next Science Ltd (ASX: NXS) share price is racing higher today. This comes after the company announced its fourth-quarter trading update for 2020.

The Next Science share price is rising despite the ASX All Ordinaries Index (ASX: XAO) heavily dropping 2.06% today. At the time of writing, the medical technology company’s shares are up 8% at $1.22.

What’s moving the Next Science share price?

The Next Science share price is on the move after reporting strong growth across its business.

For the period ending 31 December, the company delivered total group revenue of $2.3 million. This represented a 75% increase over the prior corresponding period, and accounts for 66% of FY20’s annual revenue. Next Science attributed the positive result to a recovery on surgery volumes compared to the previous 2 quarters.

In addition, the company highlighted that despite the impacts of COVID-19, it continues to see significant improvement in sales from its largest market, the United States.

Next Science noted that its XPerience no rinse antimicrobial solution has been resubmitted to the United States Food and Drug Administration (FDA) as a 510(k) medical device. This follows the company’s animal studies that was requested by the FDA to further validate the product’s effectiveness. Next Science anticipates that its first commercial sales of XPerience to begin sometime in the first-half of 2021.

The company revealed it had a healthy cash balance of US$15.3 million in the bank, with no debt.

Management commentary

Next Science managing director Judith Mitchell welcomed the results, saying:

We made good progress this quarter in advancing key regulatory approvals, and enhancing our distribution model to drive accelerated sales growth. It is pleasing to see revenue growth returning to a positive trajectory as elective surgery case volumes recover in some regions in the US.

Coupled with the expected launch of XPerience in 1H 2021 and our strengthened balance sheet, we are well placed to deliver a strong performance in 2021.


Looking ahead, Next Science believes that its fourth-quarter performance will run through the first-half of 2021. It stated that its sales team will focus on driving market adoption of the SurgX product in the United States. SurgX is a sterile wound gel that reduces surgical site infections.

Furthermore, the company will seek to expand market awareness of its Xbio technology and upcoming XPerience antimicrobial solution.

About the Next Science share price

Over the last 12 months, the Next Science share price has snowballed almost 50% lower reflecting weak investor sentiment.

The company’s shares hit a low of $1.00 in the March coronavirus meltdown last year, and have barely recovered since. Its 52-week high was recorded last February, reaching $2.76 on the ASX boards.

Based on the current share price, Next Science has a market capitalisation of roughly $232 million.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of June 30th

More reading

Aaron Teboneras 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 Bruce Jackson.

The post The Next Science (ASX:NXS) share price is up 8% today. Here’s why appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!