The Medical Developments International Ltd (ASX: MVP) share price has been a strong performer on Monday.
In afternoon trade, the medical device company's shares are up 7% to $5.37.
Why is the Medical Developments International share price charging higher?
Investors have been buying Medical Developments International shares on Monday following the release of a roadshow presentation.
Within the presentation, the company acknowledged that current results are challenging because of COVID-19 but notes that it is investing for the future.
In respect to its results, Medical Developments International recently posted a sharp reduction in profit during the first half of FY 2021.
This was driven partly by lower sales of Penthrox, also known as the green whistle, due to COVID-19 causing a reduction in trauma-related events.
Positively, management is anticipating a rebound in sales in the second half. This is due to the easing of COVID-19 restrictions and increased community movement.
What about the future?
The company also revealed that a number of initiatives are currently in-flight.
This includes the analysis of European market access routes to growth and an organisational review to position the company for rapid growth.
In respect to Europe, management notes that there are encouraging early signs of growth in Europe. This includes, in some cases, building from the ground level after almost two years of partner inactivity.
It is also targeting new European country launches in key markets in 2021, along with potential new partnerships.
Longer term opportunities
The company also provided an update on its longer term opportunities.
It notes that it had a positive exchange with the US FDA at its Type-C meeting in January. It is now awaiting the final post-meeting note regarding its path forward in the lucrative market.
In addition to this, a phase one Pharmaco-Kinetic study in China will begin to enrol patients in the third quarter of 2021.
The company also has phase three Trauma and Procedural studies in China that are planned to commence in the not so distant future.
And finally, Medical Developments International is continuing with the CSIRO to develop alternative manufacturing methods for generic active pharmaceutical ingredients (APIs) utilising its continuous flow platform technology.
It advised that advancements have been made in late-stage Lidocaine scale-up development. The company plans to advance four additional APIs into scale-up phase during 2021.
