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Key points
- Next Science shares shoot higher on new distribution deal
- Expanded presence of Xperience in United States market
- Zimmer Biomet withdraws complaint filed against Next Science last year
The Next Science Ltd (ASX: NXS) share price is on the move at midday on Monday. This comes after the company announced a major positive announcement to the ASX today.
At the time of writing, the medical technology company's shares are fetching $1.17, up 11.43%.
What did Next Science announce?
Investors have been buying Next Science shares after the company revealed it has further developed its relationship with Zimmer Biomet.
According to its release, Next Science advised it has signed a United States distribution agreement with Zimmer for Xperience.
Under the deal, Zimmer will sell a white-label version of Xperience into the United States market under its own brand. The product will launch sometime in the second half of 2022. The news appears to have sent Next Science shares rocketing today.
Next Science will receive a portion of revenues from Zimmer's white label Xperience product. Although no details were provided in the release as to exactly how much Next Science will collect.
The agreement will run for five years, but can be extended for a further five years.
Management noted that the contract confirms Next Science's Xperience intellectual property ownership and rights.
In June 2021, Zimmer filed a complaint in reference to Next Science's commercialisation and distribution rights to its Xperience No Rinse Antimicrobial Solution. This is now resolved, with Zimmer withdrawing the complaint.
In addition, both parties have agreed to a refreshed distribution arrangement for Bactisure in the United States market. The revised term has been extended until the end of 2026, with a renewal option for another five years.
Next Science managing director Judith Mitchell said:
The new arrangements with Zimmer provide a paradigm shift in the representation of Xperience to the US orthopaedic market. The Zimmer joint replacement sales team is a well credentialled market leading commercial force in the orthopaedic market and we look forward to the positive impact it can have on the US market for the white labelled version of our Xperience product, aligning with Next Science's overall mission of healing patients and saving lives.
About the Next Science share price
Next Science shares have travelled sideways over the last 12 months, registering a loss of 4.88%.
It's worth noting that the company's share price hit a fresh 52-week low of 99 cents before rebounding last week.
Based on valuation grounds, Next Science presides a market capitalisation of roughly $231.63 million, with approximately 197.97 million shares outstanding.
