Medical Developments International Limited (ASX: MVP) is happy to announce its agreement on Penthrox (a non-opioid analgesic used for pain relief for patients suffering from trauma or those requiring analgesics during surgeries) with Daiichi Sankyo located in China, Vietnam, and Thailand. Daiichi Sankyo is a Tokyo stock exchange listed company under the ticker “TSE: 4568”. As per the agreement, Daiichi Sankyo will pay MVP an amount up to $32.5m (USD), which include $15 million (USD) upfront and sales-based milestone payments.
Daiichi Sankyo group focused to reach the needs of those patients whose medical needs are not met by creating and supplying innovative pharmaceutical products catering to both emerging and mature, markets. It has over 100 years of scientific expertise in more than 20 countries with 15,000 employees across the world with a robust channel and promises to reach new medicines to help in curing the people. Also, the company’s vision is to have a competitive edge toward Global pharma innovation in the fields of Oncology. They are also focused to cater and achieve novel therapies in oncology along with immune-oncology, neurodegenerative diseases, pain management, heart and kidney diseases, and other rare diseases.
MVP and Daiichi will both be entering into the master service agreement with the EPS International Holding Co. Limited which is Japan’s leading full clinical and regulatory service provider. EPS International Holding Co. Limited is a fully 100% subsidiary unit of EPS Holdings Inc. These two companies have entered into the agreement to get Penthrox for sale in China market. MVP is going to fund for the approval process for the amount $10m (USD) and will be the owner of the intellectual property from this program. Simultaneously, MVP will become the owner of the “Drug Import License” once this agreement on Penthrox is approved.
As per Mr. Sharman, under Chinese healthcare system, Acute pain which occurs during trauma and minor surgical procedures are not treated up to the mark. MVP feels a strong market for Penthrox in China as Penthrox with the characteristic features of being non-addictive, non-opioid that is an important tool in pain management in Chinese, Thai, and Vietnam markets.
If we see the performance record of the company, for 1-year company performance in negative with a value of -8.24%. For the past 5 years, the company has performed very well with the performance of 295.16%. For the past 10 years, the company has performed exceptionally well with the performance of 2,121.27%. For FY 2018 net profit of the year was only A$ 0.243 million which is very low as compared to the previous FY 2017 with the net profit of A$ 1.820 million.
The company shows a strong balance sheet total asset being A$ 49.54 million and total liabilities being A$ 28.50 million showing that the company has the potentiality to pay back its long-term liabilities. Also, the current asset stood at A$ 8.74 million corresponding to its current liabilities which is A$ 6.10 million, showing the company has the capacity to pay its short-term liabilities. The Company’s existing cash and cash equivalent is A$ 0.794 million. The company has generated cash from its operations worth A$1.79 million only. The company has made an investments in payment for the plants and equipment and for other intangible assets worth A$10.676 million. The net cash generated from the financing activities is A$9.793 million. As a result of which there was a net decrease in the cash and cash equivalents of A$ 0.913 million.
As per the chart, it is observed that the MACD line is above the signal line and appears to be bullish in nature. MVP’s share traded at A$5.5 with the market capitalization of circa $319.92 million and PE ratio of 1,225.0x as on October 08, 2018.
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