Here's why the Next Science (ASX:NXS) share price is rocketing 11% today

The company's shares are on fire this Monday.

| More on:
A male ASX investor sits cross-legged with a laptop computer in his lap with a slightly crazed, happy, excited look on his face while next to him a graphic of a rocket shoots upwards with graphics of stars scattered around it

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

sdf

Key points

  • Next Science shares shoot higher on new distribution deal
  • Expanded presence of Xperience in United States market
  • Zimmer Biomet withdraws complaint filed against Next Science last year

The Next Science Ltd (ASX: NXS) share price is on the move at midday on Monday. This comes after the company announced a major positive announcement to the ASX today.

At the time of writing, the medical technology company's shares are fetching $1.17, up 11.43%.

What did Next Science announce?

Investors have been buying Next Science shares after the company revealed it has further developed its relationship with Zimmer Biomet.

According to its release, Next Science advised it has signed a United States distribution agreement with Zimmer for Xperience

Under the deal, Zimmer will sell a white-label version of Xperience into the United States market under its own brand. The product will launch sometime in the second half of 2022. The news appears to have sent Next Science shares rocketing today.

Next Science will receive a portion of revenues from Zimmer's white label Xperience product. Although no details were provided in the release as to exactly how much Next Science will collect.

The agreement will run for five years, but can be extended for a further five years.

Management noted that the contract confirms Next Science's Xperience intellectual property ownership and rights.

In June 2021, Zimmer filed a complaint in reference to Next Science's commercialisation and distribution rights to its Xperience No Rinse Antimicrobial Solution. This is now resolved, with Zimmer withdrawing the complaint.

In addition, both parties have agreed to a refreshed distribution arrangement for Bactisure in the United States market. The revised term has been extended until the end of 2026, with a renewal option for another five years.

Next Science managing director Judith Mitchell said:

The new arrangements with Zimmer provide a paradigm shift in the representation of Xperience to the US orthopaedic market. The Zimmer joint replacement sales team is a well credentialled market leading commercial force in the orthopaedic market and we look forward to the positive impact it can have on the US market for the white labelled version of our Xperience product, aligning with Next Science's overall mission of healing patients and saving lives.

About the Next Science share price

Next Science shares have travelled sideways over the last 12 months, registering a loss of 4.88%.

It's worth noting that the company's share price hit a fresh 52-week low of 99 cents before rebounding last week.

Based on valuation grounds, Next Science presides a market capitalisation of roughly $231.63 million, with approximately 197.97 million shares outstanding.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns and has recommended Next Science 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

Cropped shot of an attractive young female scientist working on her computer in the laboratory.
Healthcare Shares

3 ASX companies that are global leaders

Numerous ASX companies have extended their reach beyond Australia to dominate in their fields.

Read more »

Three people in a corporate office pour over a tablet, ready to invest.
Broker Notes

Bell Potter just slapped a buy on this ASX 200 share offering a 30% return

Which stock is being tipped as a buy? Let's find out.

Read more »

Happy healthcare workers in a labs
Healthcare Shares

Macquarie initiates coverage of Neuren Pharmaceuticals shares; forecasts 45% upside

The broker described Neuren as a standout in the ASX biotech sector.

Read more »

A woman leans forward with her hand behind her ear, as if trying to hear information.
Healthcare Shares

Does Macquarie think Cochlear shares are a buy, hold, or sell?

Macquarie has released a new note on Cochlear following the company's FY25 profit guidance change.

Read more »

Stethoscope with a piggy bank in the middle.
Healthcare Shares

Up 18% this year, does Macquarie expect NIB shares to go higher?

This expert has a bold prediction for NIB.

Read more »

Cropped shot of an attractive young female scientist working on her computer in the laboratory.
Healthcare Shares

Why is the Mesoblast share price up 11% in June?

The ASX biotech share reached a 10-week high of $1.94 today.

Read more »

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

Up 51% since the tariff pain, is it too late to buy Pro Medicus shares?

After rocketing higher, is the ASX healthcare share still an opportunity?

Read more »

A woman wearing a yellow shirt smiles as she checks her phone.
Healthcare Shares

CSL shares push higher on US FDA approval

This biotech giant has been given a boost in the United States.

Read more »