14-Oct-2020:  Appointment of CEO - Brent MacGregor   and   Appointment of Non-Executive Director - Gordon Naylor

I don't hold MVP shares, however I note the market liked today's news because MVP's share price rose +12.21% today, making them one of today's MVPs.  This is the "green whistle" company by the way (Penthrox).

About Penthrox®

Penthrox is a fast onset, non-opioid analgesic indicated for pain relief by self-administration in patients with trauma and those requiring analgesia for surgical procedures. Penthrox is now approved for sale in more than 40 countries and has been used safely and effectively for more than 40 years in Australia with more than 7.0 million units sold. There is growing interest in Penthrox being used in patients undergoing investigatory procedures, as well as operational procedures such as colonoscopy.

About Medical Developments International Ltd

MVP is an Australian company delivering emergency medical solutions dedicated to improving patient outcomes. MVP is a leader in emergency pain relief and respiratory products. The Company manufactures Penthrox®, a fast-acting trauma and emergency pain relief product. It is used in Australian Hospitals including Emergency Departments, Australian Ambulance Services, the Australian Defence Forces, Sports Medicine and for analgesia during short surgical procedures such as Dental and Cosmetic surgery as well as in other medical applications. MVP is expanding internationally and manufactures a range of worldleading Asthma respiratory devices.

30-June-2020:  Phillip Capital: MVP: Updating our view: Accumulate (from Buy)

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. 

05-May-2020:  Penthrox approved - Netherlands and Bosnia and Herzegovina

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.

02-April-2020:  Phillip Capital:  MVP:  “Penthrox soft patch – But we go with the Continuous Flow”

• PC’s Recommendation on MVP:  Buy                           
• Risk Rating:  High
• Target Price:  $7.80 (down from $8.20)

Excerpts:

Summary

Medical Developments International (MVP) has 3 segments:

• Pharmaceuticals (69% of FY19 revenue) - is engaged in the manufacture and sale of the Penthrox “green whistle” emergency pain relief device and methoxyflurane drug;
• Medical Equipment (“Space Chambers” and other asthma / respiratory care devices)(28% of revenue);
• Veterinary Equipment (3% of revenue). 

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?

• 1H20 Revenue $10.9m (v $9.8m) up 14.4%. Ebitda $1.5m (v $1.2m) up 21%. NPAT $0.2m (v $0.1m). DPS 2.0 cents (unchanged). All approximately in line with our forecasts.
• However Medical Equipment sales +46% was 33% ahead of our forecast, but Penthrox sales +5.5% was 14% below our ~20% growth assumption.
• CoVid-19 impact – With populations in lock down, sport and unessential activities curtailed, and traffic numbers down, we expect demand for Penthrox accident / emergency pain relief will also be reduced significantly. New country approvals and take up will also be delayed. We downgrade Penthrox sales by 36% / 35% and 17% for FY20 / 21 & 22. Respiratory devices upgraded by 18% / 18% / 18% partly offset.
• CEO John Sharman to leave after 10 years with MVP.
• We have increased confidence in the prospects for the new “Continuous Flow” drug manufacturing technology with CSIRO. We review this in more detail.  

Change in Estimates:

• We have lowered revenue forecasts by -21%, -20% and -10% for FY20 /21 /22. Ebitda reduced by -42%, 37% and -27%.
• Our updated Sum of the Parts / DCF valuation range is $5.82 to $9.83 with a mid-point of $7.82 (previously $6.39 to $10.00, mid-point $8.20). We set our 12-mth price target at $7.80 (previously $8.20), down -5%.
• We value the US opportunity for Penthrox at A$97m or ~$1.48 per share, the China opportunity at A$58m or $0.88 per share, and Flow at $60m or $0.91 /share. 

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]

27 June 2019:  Phillip Capital: MVP - "China Pathway Open" - update.

14 June 2019:  http://www.asx.com.au/documents/products/MVP-190614-PhillipCapital-Scoresby-site-visit-and-meeting-with-management.pdf

That's a link to a client note by Phillip Capital on their recent site visit to MVP's Scoresby offices where they met with Mark Edwards, MVP's CFO, for a general update. 

PC have an "accumulate" call on MVP, with a 12-month price target of $6.40 (previously $5.70).  They regard MVP as a "High" risk investment.

MVP closed yesterday (Friday 21 June 2019) at $5.39, being down 3% (or -17c) on the day.

Disclosure:  I don't hold MVP shares.

25th July 2018: USA Update from MVP

Some may view this as a temporary setback, but MVP has fallen 19% since the 24th (the day before that announcement) from $5.85 to finish today (July 30th, 6 days later) at $4.74, after making a new year low today of $4.69.

It's been a bad year for MVP.  They were trading as high as $8 during the first 3 months of 2018, and 4 months later they're 40% below those levels.   Their trading update on the 14th May resulted in a 25% share price fall over 4 trading days:

14th May Trading Update from MVP

It makes me wonder how Penthrox, a self-medicating strong-pain-relieving drug widely used in Australia since the '70s, and now used extensively in over 15 countries worldwide, with very few adverse side-effects associated with short-term use (i.e. when used as intended) could concern the FDA this much.  It's almost like the conspiracy theorists who contend that the FDA is run by US "Big Pharma" stooges to protect their own - might not be miles away from the truth...

I had a bad motorcycle accident 2 days before my 21st birthday and I sucked that green whistle dry - & had just started on a second one (after a lively argument with the ambos) when they got me to the local regional hospital.  Ahh, the memories...  31 years ago - seems like yesterday.  Even if I was mildly allergic to methoxyflurane (as I am to pethidine), I would still have used it - I was in that much pain.  It works!  I was actually pretty cheerful when we arrived at Bunbury Hospital.

Due to the risk of organ (especially kidney) toxicity, methoxyflurane (Penthrox) is contraindicated in patients with pre-existing kidney disease or diabetes mellitus, and is not recommended to be administered in conjunction with tetracyclines or other potentially nephrotoxic or enzyme-inducing drugs. 

It's not always possible to fully screen patients in emergency situations (like in ambulances after accidents) for all of those conditions and existing medications.  

The max recommended dose is 6 ml per day or 15 ml per week because of the risk of cumulative dose-related nephrotoxicity, and the inhaler should not be used on consecutive days.  When used this way (as indicated), very few adverse side-effects have been observed.

The USA already has major issues with the illegal trade and use of Oxycodone ("Oxy") and other opioids and strong analgesics. Perhaps they're concerned with their own ability to control another one.

29-Oct-2018:  SP now $4.40.  More pain to come?

22 October 2019:  MVP - FY19 Results and Outlook:  Catalysts Approaching  from Phillip Capital's Wayne Sanderson.

• Recommendation: Buy 
• Risk Rating: High
• 12-mth Target Price (AUD): $8.20 (was $6.45)
• Share Price (AUD): $5.17 ($5.67 on 25-Oct-19)
• 12-mth Price Range: $3.48 - $6.50