The Next Science Ltd (ASX: NXS) share price is up 6.94% in today's trading session. The price action follows a price sensitive announcement from the medical technology company regarding a distribution agreement in the US.
What did Next Science announce?
According to the announcement, Next Science has signed a 5-year, distribution deal to distribute its TorrentX Wound Wash product in the US. Under the exclusive deal, Tennessee-based Triad Life Sciences (TLS) has been tasked with promoting, marketing, sales and distribution of TorrentX Wound Wash in the US.
TorrentX Wound Wash is an infection prevention technology from Next Science, used in emergency rooms, hospital treatment rooms and in-home treatment. TorrentX will be paired with a tissue substitute from TLS for chronic wounds and surgical care. A clause in the deal stipulates that TLS must meet performance criteria in order to retain exclusivity.
Once FDA 510(k) clearance is received (expected in Q3 of 2020), TLS will commence exclusive sales of the paired products under the brand name 'TridentX'.
How has Next Science performed in 2019?
Next Science is a medtech company headquartered in Sydney, with a research and development centre in Florida. The company focuses on the development and commercialisation of infection control products and already boasts 4 anti-bacterial FDA-approved products. Next Science's flagship Xbio product is a unique technology that is used to reduce the impact of biofilm-based infections and free-floating bacteria.
The medical technology company listed on the ASX in April this year at an IPO price of $1.00 and quickly hit an all-time high of $4.73 in June.
The Next Science share price has since pulled back from its all-time highs after the company reported an operating cash loss of US$2 million for the quarter ending 30 September 2019. The company also reported US$927,000 in revenue for the quarter with cash receipts down from $1.2 million from the prior quarter.
Late last week, Next Science received patent coverage for its Xbio Acne Gel and Acne cream from the US Patent office.
The Next Science share price is currently trading at $1.85, valuing the company at around $331 million.
