The Next Science Ltd (ASX: NXS) share price is falling today as the company announced a non-renewal agreement with 3M. The news has sent Next Science share price plummeting 9.24% to $1.13 during late afternoon trade. In comparison, the All Ordinaries Index (ASX: XAO) moved in the opposite direction, lifting 0.5% higher to 6,772 points.
What does Next Science do?
Based in Sydney, Next Science is a medical technology company developing and commercialising its Xbio technology. This patented product attacks biofilm structures by breaking metallic bonds that hold the extracellular polymeric substance together.
Bacterial biofilms are a leading cause of antimicrobial resistance. They can be found in almost all aspects of human health, industry and food production. With nearly 80% of all global bacterial infections associated with biofilm bacteria, Next Science aims to reduce the impact of biofilm-based infections.
What's driving the Next Science share price lower?
Next Science advised that it has decided not to renew its distribution agreement with 3M for BlastX.
The deal was contracted for a term of 3 years, and required both parties to consider their future partnership by the year's end. Being the second year of the agreement, Next Science and 3M opened discussions and decided not to renew the arrangement.
The company said that communication was ongoing as to how to transition BlastX back to Next Science in a timely manner. The plan will be to prioritise the continuous supply of BlastX and ensure no disruption to patient care. Next Science advised that it will update the market when further developments arise.
About the Next Science share price
The Next Science share price has been a poor performer recently. Shares in the medical tech company have fallen from a 52-week high of $2.76 to $1.13 today. The drop represents a loss of more than 57% to investors who held onto their shares since February.
However, the company says elective surgeries have continued to increase from the second quarter to third. In addition, the company's focus on driving market penetration of its SurgX product (sterile wound gel to reduce surgical site infection) may increase its revenue streams.
