Medical Developments International (ASX: MVP) Lifts Revenue as Penthrox Demand Grows

Medical Developments International reported stronger annual revenue and cash generation as rising Penthrox demand offset weaker respiratory-device sales.

Group revenue increased 9% to $42.6 million in FY26. Earnings before interest and tax reached $200,000, up $300,000 from the prior year. Net profit after tax rose by $500,000 to $600,000.

Free cash flow improved by $5.8 million to $4.2 million. The company ended the year with $21.4 million in cash, including short-term deposits.

Penthrox is an inhaled, needle-free and non-opioid analgesic used for acute pain management. Its performance is central to MVP because Pain Management generated about 74% of group revenue. The respiratory division supplies devices used by patients managing asthma and chronic obstructive pulmonary disease.

Penthrox Drives the Revenue Gain

Pain Management revenue climbed 21% to $31.6 million. Segment earnings before interest and tax rose 49% to $9.4 million.

European revenue increased 12% to $9 million, while in-market demand grew 18%. That included 20% growth across the UK and Ireland. France grew 11%, while the Nordic region advanced 19%.

Australian Pain Management revenue rose 16% to $17.9 million. Overall volume increased 9%, supported by ambulance demand and 28% hospital-segment growth. Average selling prices were 7% higher.

Rest-of-world revenue jumped 66% to $4.1 million. However, reported growth benefited from changes in distributor inventory holdings.

Pain Management revenue included an estimated $2 million timing benefit from higher partner stock. That partly reflected the transition to partner supply in France and Switzerland. MVP expects those stocking benefits will not recur in FY27.

Cash Flow Improves, With Working Capital Help

Operating cash flow improved by $5.8 million to $5.8 million. A $5.2 million reduction in working capital usage supported the result.

That reduction reflected lower respiratory inventory investment and the timing of receivables. Capital expenditure declined to $800,000 following completion of the MAGPIE paediatric study in the prior period.

The company expects about $1.5 million of capital expenditure in FY27. It also expects roughly $1 million of amortisation tied to European paediatric registration costs.

Respiratory Sales Remain the Counterweight

Respiratory revenue fell 15% to $10.9 million amid softer demand. US revenue declined 16% to $6.1 million, while Australian revenue dropped 13% to $3 million.

Despite lower sales, segment earnings before interest and tax rose 63% to $700,000. Reduced US commercial investment and a tariff refund supported earnings.

Group profitability also absorbed $900,000 of foreign-exchange losses. The prior year included a $1.6 million currency gain.

FY27 Focus Shifts to Paediatric Adoption

MVP expects higher in-market Penthrox demand in FY27. Growth is expected from Europe’s expanded paediatric indication and continued adoption in established segments.

The indication now covers patients aged six and older in the UK and European markets. Previously, it applied to adults aged 18 and above.

Respiratory demand is expected to remain stable. However, earnings effects from Middle East supply-chain disruption and US tariffs remain uncertain.