The Medical Developments International Ltd (ASX: MVP) share price was out of form on Thursday.
The healthcare company's shares tumbled 9% lower to $6.04 following the release of its preliminary full year results.
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How did Medical Developments International perform in FY 2020?
For the 12 months ended 30 June 2020, Medical Developments International reported a 10.6% increase in revenue to $23.64 million.
This was driven by respiratory sales, which grew 61% in FY 2020 to an all-time high due to COVID-19 related purchasing, new product launches, and new pharmacy channel success in multiple markets. Respiratory sales in Australia grew 43% and sales in North America grew by 88%.
This offset a decline in Penthrox sales, which were down 8% for the full year. This compares with 6% growth in the first half. Management advised that decreased sporting and outdoor activity, as well as reduced population movements, led to softening demand in the fourth quarter within the Emergency Services market.
Nevertheless, management remains very confident on its opportunities in the Emergency Services market. It commented: "Despite the immediate headwinds experienced by Penthrox during the COVID-19 pandemic the convenience, utility and safety of the product within Emergency Services has been recognised whilst operating under difficult circumstances and we expect to emerge in a stronger position within these services."
On the bottom line things weren't quite as positive. The company reported a profit after tax of $0.379 million. This was down 63.5% on the prior corresponding period. Management advised that this was partly due to a higher weighting of generally lower margin medical devices sales. Also weighing on its profits was a 15% increase in operating expenses. This was a combination of increased pharmacovigilance costs and marketing expenses.
Outlook.
Management expects FY 2021 to be a very busy one for the company. Over the next 12 months it expects to complete the handback of the Penthrox EU distribution rights and aggressively pursue targeted country reimbursements, launches, and expansion activity via a direct in-market presence in the EU.
It also expects to complete the roll out of Penthrox into Mexico, Iran, Jordan and Thailand, and consolidate its record year for respiratory and further grow its device sales in Australia, the USA, Europe and elsewhere.
Looking further ahead, management appears confident on its growth outlook.
It commented: "Over the next few years our global market approvals and 'indication extensions' for Penthrox are expected to deliver strong growth, as will our respiratory device business. We are also making good progress with our continuous flow technology. This opportunity is significant and we are optimistic we will commercialise products from the technology."
