Next Science Limited (ASX:NXS), a Sydney-based medical technology company, has reported a 7% dip in product sales for the third quarter of FY24, generating US$4.7 million. The decline follows the restructuring of its Durable Medical Equipment (DME) sales channel. Despite these challenges, the company remains optimistic about future growth, with total year-to-date sales up 5%.
CEO I.V. Hall acknowledged the transition, saying, “The recent restructure of our sales strategy was essential for building a sustainable business model in the DME sector. We believe this will lead to stronger revenue quality moving forward and pave the way for future growth.” Hall also pointed to positive momentum from Next Science’s XPERIENCE and BLASTX products, particularly in military and private sectors.
A bright spot in the quarterly report was the 44% year-over-year increase in direct sales of the XPERIENCE surgical irrigation solution. However, sales in the wound care segment, including BLASTX, saw a 50% decline through the DME channel.
Despite these mixed results, Next Science expects to achieve positive cash flow by early 2025, thanks in part to a US$5 million loan facility with Thorney Investment Group.