Nexsen: Another ‘point of care diagnostics’ company is about to hit the ASX

There’s another company about to join the cohort of ASX biotech stocks and its name is Nexsen. Nexsen is proposed to list on Tuesday October 7, raising $6m at 20c per share, and to have the code NXN. This company has a rapid sensing technology that it will first commercialise to detect Group B Streptococcus bacteria (GBS) in expectant mothers.

And it won’t be the first ASX company to be in this space with others including Atomo Diagnostics, Lumos Diagnostics, Proteomics, Rhythm Biosciences, Cleo Diagnostics and Archer Materials being a few others. But let’s focus on Nexsen here.

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An Overview of Nexsen

The basis of Nexsen’s technology is using aptamers (synthetic DNA/RNA molecules) as capture & recognition elements, along with nanoparticle engineering and lateral flow/sensor‑based diagnostics. Nexsen’s tests are intended to be faster, lower cost, and simple enough to use outside traditional labs

Initially it is targeting Group B Streptococcus bacteria (GBS) in expectant mothers and its test is called StrepSure. GBS is a condition all pregnant women are screened for at the 36-37 week mark of pregnancy. It is a condition that 1 in 4 pregnant women carry without symptoms and while it is usually harmless in adults, it can be transmitted to newborns and cause serious infections (i.e. sepsis, pneumonia, meningitis and bacteremia).

Currently, tests for GBS can take 3-5 days and only by a vaginal-rectal swab on a test strip similar to pregnancy or COVID tests. But Nexsen’s technology can deliver in just minutes. All clinical research down to data shows it is easy to use, more sensitive than competitors, is scalable in a cost-effective way and delivers rapid results.

There are many things to like about Nexsen

Nexsen is an AI play. It uses an AI (i.e. machine learning) platform to help discover the relevant aptamers. This process is a typically computationally intensive task (comprising of multiple steps including trial and error experiments) but AI makes it simpler.

Nexsen has received $10.9m in non-dilutive grant project funding from various institutions including the RMIT, La Trobe University and multiple Australian government departments. Down the track, the technology could be used in other health indications and possible for agtech and biosecurity purposes (i.e. it could detect harmful pathogens).

The first health indication the company after GBS will pursue is Chronic Kidney Disease and it is targeting pre-clinical and clinical validation in CY26. But even if the company stuck with GBS forever, it would be a big opportunity with 132 million patients globally. The company anticipates commencing clinical trials before the end of the year and a regulatory submission in the following year. Nexsen is targeting 5 markets initially: The USA, EU, India, Australia and Southeast Asia (via Malaysia). The irony is that the company only has an opportunity of 3.7m in the USA, but India has 23m and Southeast Asia has 10m.

The company’s investor registry is led with its Founder and MD Mark Muzzin is the largest shareholder owning 18.48% both directly and through associates. A further 5% is owned by Regal and 3.49% is owned by RMIT.

Everyone will be watching its performance

Healthcare IPOs have been few and far between in recent years, and even fewer biotech IPOs. Rising interest rates have turned investor appetite from small cap companies, particularly in health. The unexpected failure of Opthea shows even late-stage clinical companies are not immune. The last health stock to list was Blinklab (ASX:BB1) which did so in 2024 and it has nearly tripled since listing. 2023 saw multiple listings – Curvebeam AI (ASX:CVB) did not perform well, but Cleo Diagnostics (ASX:COV) did.

Investors will watch closely how Nexsen goes – if well, it could be the catalyst for more IPOs in this space. It may be the catalyst for HaemaLogiX to push the ‘go’ button on its IPO ambitions. Going forward from the first day, one thing will determine the share price performance, namely whether or not it delivers on its ambitions and promises in the same way Blinklab has done. Nexsen will need to start its clinical trial on time, by the end of this calendar year.