Next Science Ltd (ASX: NXS) shares are shooting for the moon in Monday's session. When trading commenced, shares in the medical company opened almost 41% higher at $2.00. They then continued on to a new 52-week high of $2.06 before partially retreating.
At the time of writing, the Next Science share price is trading at $1.77, up 24.65%. By comparison, the All Ordinaries Index (ASX: XAO) is currently 0.03% lower.
Today's positive price movement comes as the company announced it has received clearance from the United States Food and Drug Administration (FDA) to sell one of its products in the US.
Let's take a closer look at today's announcement.
Image source: Getty Images
What's boosting the Next Science share price?
In a statement to the ASX, Next Science says it has received 501(k) clearance for its "XPerience™ No Rinse Antimicrobial Solution as a medical device in the United States." According to the company, XPerience is inserted into a surgical site, which is then closed, to fight infection for up to several hours afterwards.
Next Science says the product can be used in "every open surgery case". Initially, however, the company will target its product for use in shoulder, hip, knee, podiatry and trauma surgeries.
The company says sales in the US will commence immediately. Investors are reacting well to the news, judging by the Next Science share price.
According to the statement, surgical site infection (SSI) is the second-largest cause of hospital-acquired infection in the US. Next Science says, "The use of XPerience No Rinse Antimicrobial Solution can help prevent costly hospital re-admissions."
Management commentary
Next Science managing director Judith Mitchell said of today's update:
With an estimated 234 million surgical procedures undertaken globally per annum, XPerience provides an enormous opportunity to help reduce infection, antimicrobial resistance and save lives while reducing expenses for health systems arising from postsurgical infections.
Surgical site infections
According to John Hopkins University, the chance of developing an SSI after surgery is anywhere from 1% to 3%. SSIs usually occur 30 days after surgery and there are three types:
- Superficial SSI – infection occurs in the skin, where the initial cut was made.
- Deep incisional SSI – infection occurs in the muscle and tissue around it, underneath the cut area.
- Organ or space SSI – infection occurs anywhere in the body that is not the skin or muscle.
Risk factors for developing SSIs include being overweight, smoking, having cancer or diabetes, and undergoing emergency surgery.
Next Science share price snapshot
Over the past 12 months, the Next Science share price increased 5.35%. However, over the last three months, the company's value has appreciated by around 57%. Its 52-week high before today was $1.86 and its yearly low is $1.10.
Next Science has a market capitalisation of $280.5 million.
