The Medical Developments International Ltd (ASX: MVP) share price is on the rise today after the company reported its results for the 2019 financial year (FY19) this morning. MVP shares opened at $4.76, but have since jumped to $4.94 at the time of reporting – a rise of 3.78%.
What were MVP's numbers like?
Here is a summary of the numbers that Medical Development put out his morning:
- Gross revenue up 19.3% (compared to FY18) to $21.38 million
- Net revenue up 19.6% to $20.88 million
- Net profit after tax up 327% to $1.04 million
- Operating expenses grew 8% due to marketing and insurance costs as well as employee share payments
- Earnings per share up 293% to 1.61 cents
- Final dividend of 2 cents per share (fully franked), taking total dividend per share for FY19 to 4 cents
- Net tangible asset backing per share (as of June 30 2019) at 5.6 cents, up from negative 17.9 cents at the end of FY18.
Medical Developments reported that sales of its flagship Penthrox medicine grew 47% overall, with a 32% rise in Australian sales and a 68% rise in UK sales. Penthrox is yet to be approved by the US Food and Drug Administration (FDA) but hopes to gain approval by the 2023 financial year, pending further trials.
Meanwhile, sales of Respiratory Medical Devices grew 62% in the US market, 111% in the Asian market and 9% in the Australian market, but were down 53% in the UK/EU, leading to an overall decline of 5%. The company hopes to reverse its UK/EU declines during FY20.
Outlook for MVP
MVP reiterated its goal to make Penthrox the "mainstream analgesic of choice around the world". Over the coming year, the company expects to complete the rollout of Penthrox in Europe as well as Asian and Middle Eastern markets, whilst progressing with its pending approvals in the US market as well as the Chinese market.
Advancing work on "producing other analgesic and pharmaceutical products using the intellectual property that is our new manufacturing process" remains part of MVP's long-term plans, as well as consolidating and growing Respiratory Device sales in "the USA, Europe and elsewhere".
