MVP - Medical Developments International

[Knobby22]

MVP still not profitable. Getting close but surely you would want to see much better than this.

This company was a big winner for me but just shows with biotech it often pays to sell before waiting for profitability. I think they will eventually get there but not really of interest to me yet.

 

[Knobby22]

Australia sits at no 3 on the world table for antidepressants behind iceland and the USA.
Can understand why US is at the top, and Iceland spend a lot of the time cold and in the dark, but what the hell is going on in Australia that we get prescribed so many Antidepressants?
I asked my my wife the Pharmacist, but she was wary of seeking to blame anyone.
perhaps we need an RC?
Mick
View attachment 154287

There is say a death in the family or a divorce.
Someone is suffering, goes to doctor who instead of saying you just need to get through this hands out antidepressants. Next thing you know they are hooked for life.
Don't mess with your brain people!

 

[sptrawler]

Australia sits at no 3 on the world table for antidepressants behind iceland and the USA.
Can understand why US is at the top, and Iceland spend a lot of the time cold and in the dark, but what the hell is going on in Australia that we get prescribed so many Antidepressants?
I asked my my wife the Pharmacist, but she was wary of seeking to blame anyone.
perhaps we need an RC?
Mick
View attachment 154287

Just get everyone to stop watching the news, current affairs and morning shows listening to millionaire presenters tell you how tough life is programmes.
I would guess 60% of Australia is on suicide watch, on the expectation Trump may get returned to office.
Even Leigh Sales made a comment post retirement, that the media is causing a mental health issue in Australia, it doesn't get much clearer than that.

Leigh Sales on hosting Australian Story and re-thinking the nature of news

After six months off, Leigh Sales returns to ABC TV as the face of Australian Story. Switching off gave her a new perspective on how news is covered and the impact it's having.

www.abc.net.au

I think we need to reconsider the nature of "news" and I don't have any easy answers for this. But I think the traditional model of the news is contributing to the mental health crisis in this country.

 

[Knobby22]

We better get back on the thread subject.
There is one element that makes this company interesting. If they can get the green whistle approved in the US then possibly they could have the manufacturing volumes to become highly profitable.

The US is a highly controlled market with entrenched actors able to influence politicians and market regulators.

Still, if somehow they can get a good US partner then they may get somewhere. Worth watching.
I don't think within 6 months is at all realistic. It may take 6 years.

 

[Dona Ferentes]

We better get back on the thread subject.
There is one element that makes this company interesting. If they can get the green whistle approved in the US then possibly they could have the manufacturing volumes to become highly profitable.

The US is a highly controlled market with entrenched actors able to influence politicians and market regulators.

Still, if somehow they can get a good US partner then they may get somewhere. Worth watching.
I don't think within 6 months is at all realistic. It may take 6 years.

All you say is true, @Knobby22 ... but things have gone suspiciously quiet (from my superficial skirmish). Clinical trial now > 16 months.

There's been a rebound post EoFY but still well off earlier times (tax loss sellers have left the building?)

And the news flow .... (or lack thereof). A remarkable lack of communication... From their website: ... and ASX flow seems as barren

(Used to hold)

 

[Knobby22]

All you say is true, @Knobby22 ... but things have gone suspiciously quiet (from my superficial skirmish). Clinical trial now > 16 months.

There's been a rebound post EoFY but still well off earlier times (tax loss sellers have left the building?)
View attachment 159915
And the news flow .... (or lack thereof). A remarkable lack of communication... From their website: ... and ASX flow seems as barren

View attachment 159914
(Used to hold)

Yes, I have not been keeping abreast.
Trial results could be soon and if satisfactory price can rise. I have little trust of the USA though. Been burnt before.

 

[galumay]

I never got enough conviction to take a position, but it got pumped hard by the usual micro/small cap fundies who rely on narrative speculation in these sort of companies to provide their edge.

 

[Dona Ferentes]

Sold out today at $9.21... Just looking too pricy for me though could easily go higher especially if USA deal occurs

Getting to pricey for me... out after holding for 6 years. Will buy back if it drops...

and I'd forgotten about MVP which I used to hold .. .. name is now Medical Developments not Devices. definitely not Most Valuable Player of late.

.
and the tale of woe?

FY24 ASSET REVIEW AND NON-CASH WRITE-DOWNS​

• Non-cash asset write-downs expected in FY24 full year results
• Underlying EBIT in FY24 to be strongly improved on FY23, in line with expectations
• The Group remains on track to deliver positive operating cashflows by the end of FY25

Medical Developments International has completed a periodic review of the carrying value of assets in accordance with the Group’s accounting policies and the accounting standards. As a result, the Group expects to recognize, in its FY24 full year financial statements, write-downs to the carrying value of assets of approximately $31 million, with an after-tax earnings impact of approximately $26 million.

The non-cash asset write-downs remain subject to audit but are expected to include:
• capitalized development costs of $16 million relating to US market entry, including US market registration costs and development costs for the next generation device, giving rise to an after-tax impairment charge of $12 million;
• redundant fixed assets of $1 million; and
• deferred tax assets of $14 million, relating to the de-recognition of tax losses carried forward from prior financial years, giving rise to a tax expense of $14 million.

The write-down of US market entry development costs follows the decision to pause investment in US expansion plans. The Group currently does not meet the criteria under the relevant accounting standard to maintain balance sheet recognition. The impairment charge does not reflect the inherent value of the work completed to date, and it may be reversed when development is re-commenced.

 

[Knobby22]

and I'd forgotten about MVP which I used to hold .. .. name is now Medical Developments not Devices. definitely not Most Valuable Player of late.
View attachment 180541
.
and the tale of woe?

FY24 ASSET REVIEW AND NON-CASH WRITE-DOWNS​

• Non-cash asset write-downs expected in FY24 full year results
• Underlying EBIT in FY24 to be strongly improved on FY23, in line with expectations
• The Group remains on track to deliver positive operating cashflows by the end of FY25

Medical Developments International has completed a periodic review of the carrying value of assets in accordance with the Group’s accounting policies and the accounting standards. As a result, the Group expects to recognize, in its FY24 full year financial statements, write-downs to the carrying value of assets of approximately $31 million, with an after-tax earnings impact of approximately $26 million.

The non-cash asset write-downs remain subject to audit but are expected to include:
• capitalized development costs of $16 million relating to US market entry, including US market registration costs and development costs for the next generation device, giving rise to an after-
tax impairment charge of $12 million;
• redundant fixed assets of $1 million; and
• deferred tax assets of $14 million, relating to the de-recognition of tax losses carried forward from prior financial years, giving rise to a tax expense of $14 million.

The write-down of US market entry development costs follows the decision to pause investment in US expansion plans. The Group currently does not meet the criteria under the relevant accounting standard to maintain balance sheet recognition. The impairment charge does not reflect the inherent value of the work completed to date, and it may be reversed when development is re-commenced.

Maybe its time for another look. Gee.

 

[Dona Ferentes]

Maybe its time for another look. Gee.

you'd be more in love with it than me

 

[Knobby22]

you'd be more in love with it than me

Had a quick look. I like taking a look when companies are going through a bad patch because they sometimes get oversold and become a good risk.

There staff costs are enormous, then there is the corporate costs and advertising. They make nearly double the money from manufacturing but that is nowhere near covering all the costs. Their cash flow is terrible and they need a raising. Probably run out off money in 6 months.

Bit disappointed in them.

Couldn't buy.

Their only hope is to get a USA partner and also move the factory.