Shares in Medical Developments International Ltd (ASX: MVP) have soared more than 50% in September and hit an all-time high of $3.50 today.
Medical Developments is the only global supplier of Penthrox, commonly known as "the green whistle". Penthrox is an emergency pain relief device developed in Australia which has been used by ambulances, defence forces, surf clubs and sporting clubs for decades.
This week, Medical Developments announced they have received regulatory approval from the Health Sciences Authority in Singapore to market and sell Penthrox which provides access to another 5.2 million people.
On the 14 September, the company announced that it had finalised its European licence, development and commercialisation agreement for Penthrox with Mundipharma International – a global pharmaceutical company specialising in pain management.
Under the terms of the agreement, Mundipharma will pay Medical Developments upfront and milestone payments of up to $54.5 million US dollars including an upfront US$7 million payment. Mundipharma will have exclusive product rights in 39 European markets including France, Germany, Italy and Spain. Having a partner like Mundipharma will quickly advance the commecialisation, development and sales of Penthrox across Europe.
Penthrox is currently sold in New Zealand, South Africa, the United Arab Emirates, Qatar, Moldova and Kazakhstan while registrations are pending in Israel, Mexico, Malaysia, Iran and Iraq. Management stated that the key priority for the upcoming year will be achieving approval to sell Penthrox in the lucrative US market.
Medical Developments has a monopoly on Penthrox production and holds extensive clinical research to support its effectiveness and safety.
The global market for Penthrox is huge and it appears investors are starting to realise its future potential. There is a lot of expectation factored into the current share price of around $3.50 – FY15 earnings per share were only 2.6 cents – but Medical Developments International is a worthy addition to your watchlist as we previously highlighted here in March 2015.
