Is the Medical Developments International Ltd share price in the buy zone after today's announcement?

The Medical Developments International Ltd (ASX:MVP) share price has edged higher this morning after a positive announcement. Is it time to invest in the exciting healthcare company?

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Medical Developments International Ltd (ASX: MVP) share price has edged higher in early trade following a positive announcement.

At the time of writing the healthcare company's shares are up 1% to $4.84.

Why has it jumped?

This morning the company announced that New Zealand's leading provider of Ambulance Services, St John Ambulance, has advised that changes to its clinical practice and guidelines mean that Entonox (nitrous oxide) will be discontinued during 2017.

This will leave the company's Penthrox product as the only inhaled analgesic administered by the ambulance service.

Penthrox, also known as the green whistle, is a hand-held inhaler used for self-administration of methoxyflurane for pain relief.

In the last 12 months its presence worldwide has grown at an incredible rate and at the last count was being sold in 17 countries including the UK, France, and South Africa.

What's next?

Pleasingly, management expects similar changes to happen in other ambulance services around the world, especially in the European market as Penthrox is rolled out.

If this does in fact happen, I believe this could potentially lead to bumper profit growth for this fast-growing company over the next decade.

In light of this I would put Medical Developments International up there alongside Ramsay Health Care Limited (ASX: RHC) and Nanosonics Ltd (ASX: NAN) as great buy and hold investment options.

While its shares are reasonably expensive, I feel its long-term growth potential is undeniably strong and could justify the premium.

Motley Fool contributor James Mickleboro has no position in any stocks mentioned. The Motley Fool Australia owns shares of Nanosonics Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »