Next Science Agrees to US$50m Asset Buyout by Italian Healthcare Firm Demetra

Australian medical technology company Next Science (ASX: NXS) has agreed to a US$50 million majority asset buy-out by Italian healthcare collective Demetra Holding SpA.

The transaction, which follows a competitive sale process over several months and represents a substantial premium to Next Science’s current market capitalisation, will include the sale of regulatory approvals, contracts, intellectual property, inventory, records, and goodwill but excludes assets related to the company’s durable medical equipment business.

Next Science will distribute approximately US$30m to Next Science shareholders and use the balance to repay debt, as well as to cover transaction costs, potential tax liabilities and winding down costs.

Best Option

Next Science managing director Harry Hall IV said the board considered the asset sale the best option moving forward.

“The board and management believe this transaction is a compelling milestone for our current and future customers and shareholders,” he said.

“Through Demetra’s greater commercial breadth, financial resources and focus on advancing the science of surgical infection prevention, we believe Next Science innovations will be better positioned to realise their full potential in improving patient care globally.”

Unanimous Recommendation

Next Science directors have unanimously recommended that shareholders vote in favour of the transaction.

Piper Sandler & Co has been appointed financial advisor to the deal while Latham & Watkins and HWL Ebsworth Lawyers will act as Next Science’s US and Australian legal advisors.

Baker Donelson is serving as legal advisor to Demetra Holding.

XBIO Technology

Next Science is focused on commercialising a proprietary XBIO suite of products to reduce the impact of biofilm infections on human health.

XBIO is a unique, non-toxic technology with proven efficacy in eradicating both biofilm-based and free-floating bacteria.

The product range includes XPERIENCE advanced surgical irrigation used for cleansing and removal of debris and microorganisms from wound sites, BLASTX anti-microbial wound gel and Bactisure wound lavage, which facilitates easy removal of microorganisms via pulsed cleansing.

Next Science currently serves a US$12.5 billion market in North America, Australia and New Zealand.