Bacteria-killing biotech company Next Science broke onto the ASX with a 35 per cent gain
Health & Biotech
Health & Biotech
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Biotech company Next Science (ASX: NXS) has made an auspicious start to life as a listed company.
It hit the boards this morning and a short time ago was trading at $1.35 — a gain of 35 per cent from its listing price of $1.
The company’s flagship product is its proprietary Xbio technology platform, which works to kill biofilms — protective shields formed by bacteria that makes them harder to kill.
Prior to its listing, NXS aimed to raise $35 million via the issuance of 35,000,010 shares at $1. The company said the offer closed over-subscribed, after receiving strong interest from a mix of institutional investors.
Including the shares issued in its capital raise, Next Science now has just over 179 million shares outstanding.
Next Science has been developing its patented technology for almost a decade, after it was founded in 2012.
The company counts property magnate Lang Walker as one of its earlier investors. Walker’s investment vehicle — Walker Group Holdings — remains a major shareholder in the company with a 16.19 per cent stake.
CEO Judith Mitchell, a 30-year veteran of the health industry, says the company has a proven product with a strong track record, and several additional roll-outs also planned for the years ahead.
“Xbio has already been validated as an effective treatment for biofilm-shielded bacteria by extensive clinical testing, multiple FDA clearances and the result of more than 70,000 patient treatments since 2017,” Mitchell said.
The company wants to use the funds raised in association with its listing to further develop commercial applications for its Xbio technology.
For the less medically-inclined, Stockhead spoke with Mitchell to get some extra detail on how Next Science’s products work.
In short, Xbio utilises a salt-based solution which attacks the protective layering that forms around bacteria.
The company’s first major product is a bactisure lavage that’s distributed via Zimmer Bonnet, the world’s largest distributor of medical devices associated with knee and hip surgeries.
The product is used by surgeons to remove bacteria as part of the operation process.
Its second major product is a wound gel that’s used to treat chronic wounds, defined as wounds that haven’t healed in more than one month.
“The wound gel is nowhere near as technical a delivery mechanism,” Mitchell explained. “It can be used in the treatment of long-term wounds such as foot ulcers, as well as the sores suffered by paraplegics and quadriplegics which develop due to a lack of physical motion.”
Mitchell said that around 10 million patients around the world die from chronic wounds, including 400,000 in Australia.
The wound gel is distributed to healthcare professionals via the global science company 3M.
NXS says it’s already selling four regulatory-approved hygiene and gel products in the US. It’s in the process of working with local regulators to get the products approved for distribution in Australia.
The company is also planning to release a non-toxic acne treatment gel in Australia in the second half of 2019.
Looking ahead, Mitchell said the company will use the funds raised to further its development efforts for both new and existing products.
“We’re a long-term game,” Mitchel said. “Some of the funds will be used to broaden into pharmaceuticals, in addition to our existing medical products.”