Next Science Limited

A Brief Overview: Next Science Limited (Proposed ASX Code: NXS) is an Australian-based medical technology company, established in 2012. The headquarter of the company is situated in Sydney, Australia, with a research and development centre in Florida, USA and it is being currently headed by Ms. Judith Mitchell – the Managing Director (MD). The group was formed to commercialise and further develop its proprietary Xbio technology, which is a non-toxic technology with proven efficacy in eradicating both biofilm based and free-floating bacteria.The initial public offering by the company is of 35 million shares at an offer price of A$1.00 per Share. The minimum subscription under the offer is A$35 million. The shares to be issued under the offer will represent 19.54% of the shares on issue on completion.

The minimum application size was A$2,000 worth of Shares (2,000 Shares) and thereafter, in multiples of A$500 worth of Shares (500 Shares). The company stated that payment for the shares must be made in full at issue price amounting to A$1.00 per share. The offer was closed on 4 April 2019 and the tentative listing date on ASX is 29 April 2019.

Deployment of Funds: The proceeds received by Next Science from the issuance of new Shares under the offer will be used in regulatory, research and other employee costs, pharmaceutical product development, medical device product development, manufacturing validations, clinical trials and working capital and operating costs. Currently, the company is in the development phase of operations and therefore does not expect to be able to declare a dividend in the short to medium term.

Key Offer Statistics (Source: Company Reports)

Financial Performance: On the financial front, the total income increased by 286% from US$0.1 million in FY16 to US$0.5 million in FY17. The growth was primarily underpinned by the increased sales of Bactisure following the FDA approval for the product in September 2016. The company has primarily derived revenue from the sale of Bactisure (surgical lavage) and BlastX (wound gel) products.

In the financial year ended 31 December 2018, the company had net losses of US$13.7 million and in the financial year ended 31 December 2017, Microbial Defense System Holdings Inc. had net losses of US$2.4 million.
Total operating expenses grew 138.9% from US$7.2 million in FY17 to US$17.2 million in FY18 mainly driven by an increase in employee expenses, research and development costs, sales and marketing costs and increased general and administration costs.

Objective of the company: The objective of the company is commercialisation of its proprietary technology for the treatment of biofilm protected bacteria. This is primarily in the area of human health and with potential applications in animal health and industrial segments. As of now, the company has four FDA cleared products currently available in the US market to treat and manage surgical site infections and chronic wounds and expects sales of its fifth product, an acne treatment, to commence in Australia in the second half of 2019. It is worth a watch that the group has an objective of using the entire proceeds for growth through IPO funding in the upcoming period.
 

Disclaimer
 
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkine.com.au and associated pages are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation. Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product. The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.