Recommendation: Accumulate (downgraded from Buy), Risk Rating: High, 12-month Target Price: (AUD) $7.80 (No change).
25-May-2020: Penthrox approved in Hungary
Medical Developments International Limited (ASX: MVP) is delighted to announce that Penthrox has been approved for sale in Hungary. The Marketing Authorisation issued by the National Institute of Pharmacy and Nutrition (OGYÉI), is for Penthrox® to be used for emergency relief of moderate to severe pain in conscious adult patients with trauma and associated pain.
The approval in Hungary is part of a set of four countries.
Bosnia & Herzegovina were approved earlier this month, and approvals for Greece and Malta are expected soon.
Whilst both the European Decentralised Procedure and the National phase is complete, Penthrox is yet to achieve government reimbursement in Hungary. However sales can be made to the private market immediately.
28-Apr-2020: Penthrox is approved in Thailand
Go the Green Whistle! MVP perhaps not today's Most Valuable Player, but up +8.62% nonetheless.
The CEO, John Sharman and the Non Executive Chairman, David Williams, sold a shit tonne of shares in 2018. A former director Allan McCallum sold at the same time. I am unsure whether this was a way to introduce liquidity during a capital raising, or another reason... Still I don't like it. Shares have not been sold in in other years.???
The CEO only owns 239274 shares... David Williams, owns 14.67% of the company 9608754 or shares.
Dave Williams is in similar roles with Rate my Agent, Mobile Tyre Shop, & Polynovo. Managing Director Of Kidder Williams Capital Raisings.
John Sharman was Managing Director of CVC Ventures, Vita Life Sciences. Before then CEO at Cyclopharm.
3 other directors are also directors of Polynovo and other companies.
I have not found any reviews on Glassdoor or Seek about the culture within MVP
NPAT increased 81.8% this half year and NoPAT increased 324% between 2018 and 2019. Isn't that insane growth?
Penthrox sales increased 42%UK, Aus 18%, Europe 35% and there are more countries approving all the time.. the biggest China and the US are yet to approve but Management are ticking their boxes and once that market is cracked the share price will be justified.
A side note to the Penthrox sales point is that it raises the libido in women (not men). Which can only be a good thing.
Medical Developments has 3 divisions.
Pharmaceuticals – the sale of Penthrox® . This contributes $6652000 revenue, and is their fastest growing segment.
Medical Devices - Asthma Spacers/face masks, CPR flowmeters/masks/regulators... This contributes $4,083,000.00 revenue
Veterinery - Flow metres/masks /regulators... This contributes $160000.00 revenue.
This half year report highlights some of the sales growth rates in its various divisions.
Another way they might create value is with their new manufacturing process (Continuous Flow), which is being developed with the CSIRO. This lets them use smaller factories, lower costs and speeds up manufacturing when needed, slows it down when required, and produces a higher quality product, rather than the sandardised "batch" way of manufacturing.
Management are also directors in Polynovo (burns), Probiotec (pill and potion packaging for healthcare) and a bunch of other companies in healthcare, realestate, venture capital etc. this may create possible synergies...
When I worked out their Return on Invested Capital I honestly thought "Why bother researching further" as i thought it should be huge, not negative. Once include the huge markets yet to be tapped, the current growth rates on all of their products in all regions, and the costs that should be stripped from their balance sheets I think that their profit margins will be huge.
It does pay a dividend also... At the moment its 0.5% which is nothing to brag about....Fast forward 5 years and it could be a great dividend yeild.
22 October 2019: MVP - FY19 Results and Outlook: Catalysts Approaching from Phillip Capital's Wayne Sanderson.
Medical Developments International (MVP) has 3 segments:
The two main segments are both undergoing strong international expansion.
We forecast Penthrox sales to go from $11.9m in FY19 to $128m for the 41 approved countries to date, under a 12 year roll out scenario. Approvals to be sought in a further 50+ countries including the USA, China and Russia could take this to $240m of annual sales (not in our forecasts).
What has changed?
Change in Estimates:
Recommendation – 12-mth Price Target $8.20
MVP shares have fallen ~50% in the last 4 months. We still see value and a number of catalysts in 6-12 mths (US IND restart, further new country launches and Continuous Flow licence deal). Buy maintained despite the downgrade.
[click on the link at the top of this straw for more]