Next Science Reports $4.69M Loss, $10.49M Revenue in H1 2025
Next Science Limited reported a 7% revenue decline and a 20% reduction in net loss for H1 2025, alongside a major $50 million asset sale agreement with OSARTIS GmbH. The transaction, approved by shareholders, signals a strategic pivot for the biofilm-focused medical device company.
- 7% revenue decline to USD 10.49 million in H1 2025
- 20% reduction in net loss to USD 4.69 million
- Binding agreement to sell majority of assets to OSARTIS for USD 50 million
- Shareholder approval secured, completion expected mid-September 2025
- Operational cost restructuring reduces selling expenses; legal costs increase
Financial Performance and Operational Shifts
Next Science Limited has reported its half-year results for the period ending 30 June 2025, revealing a modest 7% drop in revenue to USD 10.49 million compared to the prior corresponding period. Despite this decline, the company managed to reduce its net loss by 20%, narrowing it to USD 4.69 million. This improvement was driven in part by a significant reduction in selling and distribution expenses, which fell by over USD 2 million following a restructuring of the direct sales force.
However, administration expenses rose by approximately USD 447,000, largely due to increased legal costs associated with ongoing litigation. Research and development expenses saw a slight decrease, reflecting lower clinical study costs. The company’s gross margin improved to 83%, up from 80% the previous year, indicating better cost management despite lower sales.
Strategic Asset Sale to OSARTIS
A pivotal development for Next Science is the binding agreement announced on 1 July 2025 to sell substantially all of its assets, excluding its Durable Medical Equipment business, to OSARTIS GmbH, a portfolio company of Demetra Holding S.p.A. The deal, valued at USD 50 million in cash, includes regulatory approvals, intellectual property, contracts, inventory, and goodwill. Shareholders approved the transaction on 28 August 2025, with completion anticipated on or shortly after 15 September 2025.
This sale is expected to provide a significant cash infusion, which the company is relying on to maintain its going concern status. Importantly, the transaction will not alter the company’s capital structure, as it is a cash-only deal without equity considerations.
Business Focus and Risks
Next Science continues to focus on developing technologies targeting biofilms and the infections caused by bacteria, fungi, and viruses, with operations spanning Sydney and Florida. The company acknowledges the inherent risks typical of medical device firms, including regulatory approvals, patent protections, and market acceptance challenges. The sale to OSARTIS may mark a strategic shift, potentially narrowing the company’s operational scope to its Durable Medical Equipment segment or other areas not included in the asset sale.
Cash reserves stood at just under USD 1 million at the end of June 2025, down from USD 1.67 million at the end of 2024, underscoring the importance of the asset sale proceeds. The company’s loan facility with Thorney Investment Group remains in place, with USD 4.5 million drawn down as of June 2025, reflecting ongoing financing needs.
Looking Ahead
With shareholder approval secured and the transaction nearing completion, Next Science is at a crossroads. The infusion of USD 50 million will provide liquidity and may enable a refocused business strategy. However, the company faces the challenge of redefining its market position post-sale and managing the risks inherent in medical device development and commercialization.
Bottom Line?
Next Science’s upcoming asset sale could redefine its future, but investors will watch closely how it navigates post-transaction challenges.
Questions in the middle?
- What strategic direction will Next Science pursue after divesting most of its assets?
- How will the company manage ongoing legal costs and litigation risks?
- What impact will the asset sale have on the remaining Durable Medical Equipment business?
