Medical Developments International (ASX: MVP) gives shareholders hope for FY23
Nick Sundich, August 4, 2022
As reporting season begins, Medical Developments International (ASX: MVP) is looking to the future. It gave unaudited revenue for FY22 and a promise of strong growth in FY23, but did so while rattling the tin for some more capital.
No time to do stock research, but you still want to invest?
Stocks Down Under Concierge gives you timely BUY and SELL alerts on ASX-listed stocks!
GET A 3-MONTH FREE TRIAL TO CONCIERGE TODAY
Who is Medical Developments International and how has it performed?
MVP is the only manufacturer and worldwide rights holder of emergency painkilling drug Penthrox. Despite distributing the drug in Europe and Australia, it still does not have FDA approval. It also as a respiratory device business selling products and its biggest shareholder is Melbourne businessman David Williams.
This morning, MVP announced unaudited revenue for FY22 of $22.4m, which represents growth of 37%. It also anticipated strong revenue growth in FY23. MVP did not announce its bottom line, but had previously indicated another loss due to higher investment into the business.
Medical Developments International (ASX:MVP) share price chart (Graph: TradingView)
Medical Developments International rattling the tin
This morning’s news was accompanied with a $30m capital raising, consisting of a $15m placement and $15m rights offer. The bad news about the capital raising is this deal is being done at a 16.7% discount to yesterday’s closing price.
The good news is that the company’s cash balance will be $49m after the deal and the directors (including David Williams) will take up their entitlements in full, effectively sub-underwriting up to $1.2m of the rights offer.
What is next?
MVP has promised shareholders it will use the proceeds to invest into further growth. The company wants to continue to expand the uses for Penthrox to minor surgeries and home first-aid kits (among others) and to obtain FDA approval for the US.
The latter step is still some time away, but the US regulator has given approval to undertake a Phase III trial, meaning it is gradually edging closer.
No time to do stock research, but you still want to invest?
Stocks Down Under Concierge gives you timely BUY and SELL alerts on ASX-listed stocks!
GET A 3-MONTH FREE TRIAL TO CONCIERGE TODAY
No credit card needed and the trial expires automatically.
Blog Categories
Get Our Top 5 ASX Stocks for FY25
Recent Posts
Resouro Strategic Metals (ASX:RAU): What other ASX rare earths developer has a 1.7 billion tonne deposit?
To say Resouro Strategic Metals (ASX:RAU) has got a monster of a rare earths deposit is an understatement. Resouro just…
Teaminvest Private (ASX:TIP): The ASX’s most unique investment company!
Teaminvest Private (ASX:TIP) may not be as prominent an investment company as Magellan or Wilson, but perhaps it has not…
Patriot Battery Metals (ASX:PMT): It has a 4.88Mt lithium deposit, and Volkswagen just invested C$69m!
Patriot Battery Metals (ASX:PMT) has capped off 2024 in stellar fashion, unveiling an investment deal with Volkswagen. Patriot Battery…