The Next Science Ltd (ASX: NXS) share price is surging higher today. This comes after the company announced it has received CE mark approval for its product, BlastX. At the time of writing, the Next Science share price is up 5.04% to $1.25.
BlastX is an antimicrobial wound gel that uses the company's biofilm-disrupting Xbio technology. BlastX works by breaking down the protective layer of biofilm and eliminating the bacteria. It then maintains a moist wound environment which allows the healing process to begin.
The product is ideal for the treatment of chronic wounds such as diabetic foot ulcers, bed sores (pressure ulcers) and venous leg ulcers. In addition, BlastX is used in operating theatre environments to help prevent infections in acute and surgical wounds.
Let's take a look and see what is moving the Next Science share price today.
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What's driving the Next Science share price?
The Next Science share price is on the rise after the company advised the CE mark approval in Europe will enable it to now apply to sell BlastX in each market in the European Union and United Kingdom.
In an independent study published in 2015, the company demonstrated that using its BlastX product with custom antibiotics worked effectively. The speed of healing in choric wound closures increased by 40% in 4 weeks. This was conducted over a 4-week randomised trial with 45 patients and compared with customised antibiotic treatment on its own.
The advanced wound care market in Europe is estimated to be around US$2.8 billion per year, growing 4.5% annually. According to Next Science, as population centres expand, so too does the market value for collective BlastX and antibiotic treatment.
At the moment, BlastX is being sold by 3M in the world's largest healthcare market, the United States.
Management remarks
Next Science managing director Ms Judith Mitchell commented:
The receipt of a CE Mark approval for BlastX represents the successful conclusion of three years of work and marks a major milestone for Next Science as we pursue our mission to heal patients and save lives worldwide by reducing the impacts of biofilms on human health. The CE Mark is a minimum requirement for many other jurisdictions so we can now work on further approvals.
Return of revenue
In a further update, Next Science stated it is witnessing a return of revenue run rates in the fourth quarter. The current levels are matching those of the prior corresponding period.
Furthermore, the company believes, should the US Food and Drug Administration (FDA) approve its surface disinfectant, Xperience, this will also positively impact earnings. Next Science is resubmitting its 510(k) application for approval of Xperience by the end of the year.
Negotiations for licencing are ongoing, and it is anticipated these will be finalised some time in the first quarter of 2021.
About the Next Science share price
The Next Science share price has been trending lower since the beginning of the year, down nearly 35%. The company's shares reached an all-time high of $2.76 in late January before the COVID-19 selloff hit. In March, the Next Science share price fell to an all-time low of $1.00.
