On behalf of the Board, it gives me great pleasure to offer you this opportunity to invest in Next Science Limited.
Next Science’s objective is to commercialise its proprietary technology for the treatment of biofllm protected bacteria, primarily in the area of human health and with potential applications in animal health and industrial segments. In my 30 years of health industry experience I have led companies in the medical device, pharmaceutical and health insurance sectors, I have seen the significant impact of biofllm based infections on human health, causing patient morbidity and mortality, and compounding health system costs. Millions of people worldwide are affected by biofllm based infections, such as chronic wounds, chronic otitis media (middle- ear), chronic sinusitis and implant and catheter-associated infections, each year.
In general, bacteria exist in two forms during growth and proliferation. In one form, the bacteria are single, independent cells whereas in the other form, bacteria group together on a surface and form a shield. The latter form, representing 90% of all bacteria, is commonly referred to as biofllm based bacteria. A biofllm is a surface film formed by bacteria that shields the bacteria from conventional methods of eradication, promoting antibiotic resistance.
The Company’s proprietary Xbio technology is a non-toxic technology with proven efficacy in eradicating biofllm and biofilm protected bacteria. Xbio has been validated by extensive clinical testing, multiple FDA clearances and more than 70,000 patient treatments since 2017. Next Science’s Xbio technology is the basis of four FDA cleared products currently being sold in the US market to eliminate biofllm protected bacteria in surgery and chronic wound care applications. Next Science has distribution agreements with major multinationals 3M and Zimmer Biomet, and has a pipeline of additional product development opportunities planned for the short and medium term. Next Science expects sales of its acne treatment to commence in Australia in the second half of 2019 under an agreement with Advanced Skin Technology. The majority of Next Science’s revenue is generated from sales through third party distributors which allows the Company to access large global markets without incurring extensive sales and marketing expenditures. This provides Next Science with an attractive platform from which to grow, while maintaining a focus on ongoing research and development activities aimed at unlocking further healthcare product and market opportunities for its patented Xbio technology.
Complementing our experienced management team led by Managing Director Judith Mitchell, Next Science has an experienced governance board comprising directors with strong commercial and healthcare experience across global markets. As the Company has now commenced its commercialisation phase, the Board has decided to fund the acceleration of its product and market development through an initial public offering on the ASX.
Through this Prospectus, the Company is inviting investors to subscribe for 35,000,000 Shares, at an Offer Price of A$l .00 per Share to raise (before costs and expenses of the Offer). The proceeds from the Offer will be used to expand Next Science’s product development activities, for administration costs and working capital, and to pay for the costs of the Offer.
Before subscribing for Shares, you should consider in full the risks of investing in the Company. The Company is subject to a range of risks including: (i) regulatory approvals; (ii) reliance on distribution partners; (iii) financial performance; (iv) protection of intellectual property; and (v) reliance on key personnel. A summary of the main risk factors associated with an investment in Next Science is found in Section 6 of this Prospectus.
This Prospectus contains important information in relation to the Offer, the historical financial results of Next Science as well as the operations, management team and future plans of the Company. Before making an investment decision, I encourage you to read and understand the Prospectus, and seek independent professional advice as necessary. An investment in Next Science should be considered speculative.
On behalf of the Directors, I recommend this Offer to you and look forward to your support and participation as a shareholder.
George Savvides BE MBA FAICD