Next Science Reports 3% Sales Growth and $39.6M Cash After Asset Sale

• Q3 FY25 product sales increased 3% to US$4.8 million
• Direct product sales declined 28% to US$2.5 million
• Completed sale of assets to OSARTIS GmbH for US$50 million
• Cash balance surged to US$39.6 million with no debt
• Plans to return approximately US$30 million net proceeds to shareholders

Sales Performance and Product Mix

Next Science Limited has reported a modest 3% increase in product sales for the third quarter of fiscal 2025, reaching US$4.8 million. This growth was driven primarily by stronger sales of its XPERIENCE product line and partner channels, which helped offset a notable decline in Durable Medical Equipment (DME) sales. Direct product sales, which represent just over half of total product sales, fell by 28% to US$2.5 million, highlighting a shift in sales dynamics within the company’s portfolio.

Asset Sale and Financial Position

In a significant strategic move, Next Science completed the sale of substantially all its assets to German medical technology firm OSARTIS GmbH for US$50 million. This transaction, finalized on 15 September 2025, included the assumption of certain liabilities by OSARTIS. The sale marks a pivotal moment for Next Science, which has historically focused on commercializing its proprietary XBIO™ technology aimed at combating biofilm-based infections.

Following the sale, Next Science’s cash position improved dramatically, with a closing balance of US$39.6 million as of 30 September 2025, compared to just US$1.0 million at the end of the previous quarter. The company also fully repaid its US$5 million loan facility from Thorney Investment Group, leaving it debt-free and with a strong cash buffer.

Operational Cash Flow and Cost Management

Despite increased product manufacturing and administrative costs; largely related to legal and transaction expenses; Next Science improved its net operating cash outflows by 59% year-on-year, reducing the outflow to US$1.2 million in Q3 FY25. This improvement reflects tighter cost control and the benefits of the asset sale proceeds bolstering liquidity.

Shareholder Return Plans

Next Science has announced its intention to return the net proceeds from the asset sale to shareholders. After accounting for debt repayment, transaction costs, potential tax liabilities, and winding down expenses, the estimated net amount available for distribution is approximately US$30 million. The company is currently awaiting tax and legal advice to finalize the details and will provide further information in an upcoming Extraordinary General Meeting (EGM) notice.

This development signals a major transition for Next Science, moving away from its operational business towards returning value to shareholders. Investors will be keenly watching the forthcoming EGM for clarity on timing and the structure of the distribution.

Bottom Line?

Next Science’s asset sale and strengthened cash position set the stage for a significant shareholder return, but the timing and tax implications remain key uncertainties.

Questions in the middle?

• What is the expected timeline and structure for the shareholder return following the asset sale?
• How will potential tax liabilities and winding down costs impact the net proceeds available to shareholders?
• What strategic direction will Next Science pursue post-asset sale, if any?