The Next Science Ltd (ASX: NXS) share price is racing higher today. This comes after the company announced its fourth-quarter trading update for 2020.
The Next Science share price is rising despite the ASX All Ordinaries Index (ASX: XAO) heavily dropping 2.06% today. At the time of writing, the medical technology company's shares are up 8% at $1.22.
What's moving the Next Science share price?
The Next Science share price is on the move after reporting strong growth across its business.
For the period ending 31 December, the company delivered total group revenue of $2.3 million. This represented a 75% increase over the prior corresponding period, and accounts for 66% of FY20's annual revenue. Next Science attributed the positive result to a recovery on surgery volumes compared to the previous 2 quarters.
In addition, the company highlighted that despite the impacts of COVID-19, it continues to see significant improvement in sales from its largest market, the United States.
Next Science noted that its XPerience no rinse antimicrobial solution has been resubmitted to the United States Food and Drug Administration (FDA) as a 510(k) medical device. This follows the company's animal studies that was requested by the FDA to further validate the product's effectiveness. Next Science anticipates that its first commercial sales of XPerience to begin sometime in the first-half of 2021.
The company revealed it had a healthy cash balance of US$15.3 million in the bank, with no debt.
Management commentary
Next Science managing director Judith Mitchell welcomed the results, saying:
We made good progress this quarter in advancing key regulatory approvals, and enhancing our distribution model to drive accelerated sales growth. It is pleasing to see revenue growth returning to a positive trajectory as elective surgery case volumes recover in some regions in the US.
Coupled with the expected launch of XPerience in 1H 2021 and our strengthened balance sheet, we are well placed to deliver a strong performance in 2021.
Outlook
Looking ahead, Next Science believes that its fourth-quarter performance will run through the first-half of 2021. It stated that its sales team will focus on driving market adoption of the SurgX product in the United States. SurgX is a sterile wound gel that reduces surgical site infections.
Furthermore, the company will seek to expand market awareness of its Xbio technology and upcoming XPerience antimicrobial solution.
About the Next Science share price
Over the last 12 months, the Next Science share price has snowballed almost 50% lower reflecting weak investor sentiment.
The company's shares hit a low of $1.00 in the March coronavirus meltdown last year, and have barely recovered since. Its 52-week high was recorded last February, reaching $2.76 on the ASX boards.
Based on the current share price, Next Science has a market capitalisation of roughly $232 million.
