Why the Next Science (ASX:NXS) share price opened 40% higher

The Next Science Ltd (ASX: NXS) share price is shooting for the moon after the company's latest announcement. Click on to find out why.

| More on:
Rising healthcare ASX share price represented by doctor giving thumbs up

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Next Science Ltd (ASX: NXS) shares are shooting for the moon in Monday's session. When trading commenced, shares in the medical company opened almost 41% higher at $2.00. They then continued on to a new 52-week high of $2.06 before partially retreating.

At the time of writing, the Next Science share price is trading at $1.77, up 24.65%. By comparison, the All Ordinaries Index (ASX: XAO) is currently 0.03% lower.

Today's positive price movement comes as the company announced it has received clearance from the United States Food and Drug Administration (FDA) to sell one of its products in the US.

Let's take a closer look at today's announcement.

What's boosting the Next Science share price?

In a statement to the ASX, Next Science says it has received 501(k) clearance for its "XPerience™ No Rinse Antimicrobial Solution as a medical device in the United States." According to the company, XPerience is inserted into a surgical site, which is then closed, to fight infection for up to several hours afterwards.

Next Science says the product can be used in "every open surgery case". Initially, however, the company will target its product for use in shoulder, hip, knee, podiatry and trauma surgeries.

The company says sales in the US will commence immediately. Investors are reacting well to the news, judging by the Next Science share price.

According to the statement, surgical site infection (SSI) is the second-largest cause of hospital-acquired infection in the US. Next Science says, "The use of XPerience No Rinse Antimicrobial Solution can help prevent costly hospital re-admissions."

Management commentary

Next Science managing director Judith Mitchell said of today's update:

With an estimated 234 million surgical procedures undertaken globally per annum, XPerience provides an enormous opportunity to help reduce infection, antimicrobial resistance and save lives while reducing expenses for health systems arising from postsurgical infections.

Surgical site infections

According to John Hopkins University, the chance of developing an SSI after surgery is anywhere from 1% to 3%. SSIs usually occur 30 days after surgery and there are three types:

  1. Superficial SSI – infection occurs in the skin, where the initial cut was made.
  2. Deep incisional SSI – infection occurs in the muscle and tissue around it, underneath the cut area.
  3. Organ or space SSI – infection occurs anywhere in the body that is not the skin or muscle.

Risk factors for developing SSIs include being overweight, smoking, having cancer or diabetes, and undergoing emergency surgery.

Next Science share price snapshot

Over the past 12 months, the Next Science share price increased 5.35%. However, over the last three months, the company's value has appreciated by around 57%. Its 52-week high before today was $1.86 and its yearly low is $1.10.

Next Science has a market capitalisation of $280.5 million.

Marc Sidarous has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Nexus Energy Limited. 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.

More on Healthcare Shares

Male doctor in a lab coat working at laptop looking serious.
Healthcare Shares

This bombshell for ASX healthcare shares could hit 6 million Australians

This could have a large impact.

Read more »

Two scientists in a Rhythm Biosciences lab cheer while looking at results on a computer.
Healthcare Shares

2 ASX healthcare shares having a stellar run today

The ASX healthcare sector is down today but these two stocks are bucking the trend.

Read more »

A company manager presents the ASX company earnings report to shareholders at an AGM.
Healthcare Shares

Why this $13 billion ASX 200 healthcare stock is surging today

A change in sentiment for the healthcare player.

Read more »

Shot of a scientist using a computer while conducting research in a laboratory.
Healthcare Shares

This ASX 200 stock hit a 52-week low and a top broker thinks it can rebound

Patient investors may see this stock make a pleasing recovery.

Read more »

A couple smile as they look at a pregnancy test.
Healthcare Shares

Why this sold-off ASX healthcare share could be an exciting dividend buy

This could be a healthy stock for dividends.

Read more »

a smiling woman sits at her computer at home with a coffee alongside her, as if pleased with her investments.
Healthcare Shares

Is CSL the best ASX 100 share to buy now?

Bell Potter has good things to say about this blue chip star.

Read more »

Scientists in a laboratory look at a computer screen with anticipation on their faces representing a potential change in the performance of ASX biotech shares in FY23
Healthcare Shares

Down 10% in a month, are CSL shares feeling the sting of a potential disruption?

Brokers are still bullish.

Read more »

One girl leapfrogs over her friend's back.
Healthcare Shares

Doubled in a year! Does this booming ASX share have another 24% upside?

Let's take a look.

Read more »