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Why this ASX medical technology share is up 11% today

Health technology shares

The Next Science Ltd (ASX: NXS) share price is racing higher today, up by 11.38% at the time of writing, following the release of an update regarding the coronavirus and the company’s sales activities in the US.

Impact on sales in the US market

The medical technology company revealed in its announcement today that it is seeing an impact on its activities due to the coronavirus outbreak in the US, with a reduction in new client growth. This is being driven by a reduction in the number of visits by its distribution agents to hospitals, the postponement of some medical congresses and also a reduction by hospitals in the number of elective surgery procedures.

Next Science added that it is not yet in a position to forecast sales demand for the second quarter of 2020, as the duration of the US’ national status of emergency is currently unknown.

Potential benefit from coronavirus outbreak

Next Science stated that it currently has a number of products either currently launched, or expected to be launched, later this year that are effective in the removal of viruses similar to the coronavirus.

The company, therefore, expects to reap some benefit from the global increased focus and awareness on infection prevention in general. Next Science believes this will extend over the longer-term, well beyond the current duration of the coronavirus crisis.

Next Science noted that it currently has three products that are effective in the removal or prevention of coronavirus-like viruses and bacteria: one used in the surgical field, one in relation to infected wounds and one used for surgical procedures.

On March 3, Next Science shares soared higher after the company released an update on its Bactisure surgical lavage and revealed that had received its CE mark approval for the product.

Next Science has two products that it is currently seeking regulatory approval for in the US that further address infection: a surface disinfectant and a surgical rinse. The company is anticipating commercial launch of these products in the second half of FY 2020.

Five new products still on track to be launched in 2020

In total, Next Science is anticipating the launch of five new products during 2020 and doesn’t expect the current coronavirus outbreak to impact this timeline, as work on product and regulatory testing continues.

The company has put in place an infection management policy in its Jacksonville facilities to ensure that safety and business continuity is maintained throughout the period of the current crisis.

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Motley Fool contributor Phil Harpur has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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