The Medical Developments International Ltd (ASX: MVP) share price is up 4.6% as we head into the lunch hour.
Medical Developments shares closed yesterday at $1.85 and are currently trading for $1.93.
The ASX healthcare company, focused on emergency pain relief and respiratory products, released its full-year results for the 12 months ending 30 June (FY22) this morning.
Here are the highlights.
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Medical Developments share price gains on revenue boost
- Underlying revenue of $22.4 million, up 37% from FY21
- Underlying earnings before interest and taxes (EBIT) came in at a loss of $14.7 million compared to a $10.1 million EBIT loss the prior year
- Net loss after tax of $12.4 million, a slight improvement on the $12.2 million loss from FY21
- No dividend declared.
What else happened during the year?
Medical Developments was able to lift its FY22 revenue despite ongoing disruption to sales from COVID restrictions throughout most of the 12 months. Those restrictions hit sales particularly hard in France, where the company is targeting significant growth.
Management said the fall in underlying EBIT, down $4.6 million from FY21, reflected that it's currently in the investment phase of its growth strategy.
As at 30 June the company had $20.4 million in cash. Adding in the $28.5 million proceeds it received from the capital raising this month, it reported a current proforma cash position of $49 million.
Revenue from Medical Developments' pain medication, Penthrox, was up 29% from FY21, driven by higher volumes. The company is working to accelerate sales of Penthrox in global markets, establishing a European regional team and an in-market sales team in France.
It also signed a distribution agreement with Paladin Labs in Canada, with supply to commence in FY23.
And in the United States, the Food and Drug Administration (FDA) lifted its clinical hold on Penthrox unconditionally, opening the door to commencing the Phase III study.
What did management say?
Commenting on the results that look to be lifting the Medical Developments share price today, CEO Brent MacGregor said:
We have delivered strong revenue growth against a challenging backdrop and have made significant progress in transitioning the Company to support direct sales in key markets, including building the leadership and functional capability to deliver our growth aspirations…
Our earnings reflect the investments we are making to build capability to execute our strategy, including a direct sales team in France, and enhanced leadership and functional teams. We will deliver leverage from these investments as we drive penetration and increase volumes.
What's next?
While not giving specific guidance, Medical Developments said it expects to deliver "strong revenue growth" in FY23. It aims to achieve this with significant growth in the French market along with growth in its respiratory segment driven by demand in the US.
"We remain confident that our pivot to direct sales in key markets will accelerate the growth of Penthrox and deliver significant long-term shareholder value," MacGregor said.
Medical Developments share price snapshot
Despite today's lift and a big run higher in June, the Medical Developments share price remains down 61% in 2022. That compares to a year-to-date loss of 7% posted by the All Ordinaries Index (ASX: XAO).
