Medical Developments International Limited · ASX:MVP
Medical Developments International — Investor Presentation (July 2024)
35 slides from Medical Developments International's investor presentation, Jul 26, 2024
Slide 1: Capital Raising Presentation
ASX:MVP CAPITAL RAISING PRESENTATION 26 July 2024
Slide 2: Important notice and disclaimer
Important notice and disclaimer Disclaimer This presentation is dated 26 July 2024 and has been prepared by and is the sole responsibility of Medical Developments International Limited ACN 106 340 667 (“MVP” or “Company”). This presentation has been prepared in relation to the underwritten accelerat
Slide 3: Important notice and disclaimer
Important notice and disclaimer This presentation contains certain forward looking statements and comments about future events, including statements about the Company’s expectations about the financial and operating performance of its business, the timetable and outcome of the Offer and the proceeds
Slide 4: Important notice and disclaimer
Important notice and disclaimer name) and there is no statement in this presentation which is based on any statement by a Limited Party. No Limited Party makes any recommendation as to whether any potential investor should participate in the Offer and makes no representations or warranties, express
Slide 5: Investment highlights
Investment highlights In FY24 Medical Developments International (“MVP”) delivered further revenue growth and margin expansion 9 Growth of ~30% in Australian Hospital emergency departments with encouraging lead indicators Penthrox, the iconic Green Whistle 9 Record in-market volumes of Penthrox® in
Slide 6: FY24 financial highlights and capital raise summary
FY24 financial highlights and capital raise summary • Group Revenue of $33.2m (+3%) with improved results in Pain Management and Respiratory • Gross Margin expansion of 5ppts to ~74% • Significant operating cost reduction of ~$5m driven by efficiencies FY24 financial • Strongly improved EBIT and cas
Slide 7: Business overview
Business overview The Pain Management segment delivers more than 60% of Group revenue, driven by demand for Penthrox® in Australia and global markets Pain Management Respiratory Supplies pharmacies, medical clinics and hospitals with a range of Description Manufactures Penthrox®, an inhaled, needle-
Slide 8: FY24 strategic and operational highlights
FY24 strategic and operational highlights MVP has delivered good progress in its strategic priorities in FY24 FY24 strategic priorities Progress Improve margins through pricing • $7.2m earnings benefit from pricing ($2.2m) and efficiency improvements ($5.0m) and operational efficiency • Additional
Slide 9: The MAGPIE study – a growth enabler
The MAGPIE study – a growth enabler A successful clinical study outcome in children1,2 potentially expands addressable market for Penthrox • Submission of the MAGPIE study data to the European regulatory agency expected in August 2024 (decision expected August 2025) • Regulatory approval of a reduce
Slide 10: Growth Drivers
GROWTH DRIVERS
Slide 11: Improve margins through pricing and efficiency
Improve margins through pricing and efficiency Positive momentum in improving margins and the cost base FY24 achievements • Gross margin improvement of 5ppt versus FY23, driven by pricing and supply chain efficiencies • Pricing improved in Australia, reflecting PBS price movements in FY23, and impro
Slide 12: The Australian Penthrox market
The Australian Penthrox market ® Penetration in emergency departments has the potential to deliver 30-40% CAGR over next 5 years Ambulance Emergency Departments (ED) Procedural segments 9 Penthrox® used broadly in 100% of ambulance 9 Strong lead indicators with 244 purchasing 9 Well established in h
Slide 13: Accelerate penetration of Penthrox in Australia
Accelerate penetration of Penthrox in Australia ® Engagement approach to promote faster product adoption over time and support growth in global markets Our strategy to accelerate penetration What the raise will enable • Reduce field-based commercial investment in the near term, in favour of increase
Slide 14: Grow Penthrox in global markets
Grow Penthrox in global markets ® Leveraging a capital-light partner supported go-to-market strategy in a targeted manner Progress Growth strategy 9 Penthrox® distributed in more than 20 international markets • Strong partner engagement and knowledge exchange, including support with external medical
Slide 15: Drive continued growth in Respiratory
Drive continued growth in Respiratory A profitable capital-light business The business today Growth strategy Strong growth in the large US spacer market 9 Strong revenue growth, delivering 30% CAGR • Maintain leading market position in Australia FY21-FY24 through strong partner engagement and sales
Slide 16: Results
RESULTS
Slide 17: Results summary
FY24 Full Year (unaudited results) Results summary $million FY23 FY24 Change $m Commentary Revenue1 32.3 33.2 0.9 • Group revenue up 3% Underlying EBITDA (15.1) (8.2) 6.9 • Continued growth of Penthrox® volumes in Underlying EBIT (18.2) (11.6) 6.6 Australia and Europe and strongly improved Underlyin
Slide 18: Pain Management segment revenue
FY24 Full Year (unaudited results) Pain Management segment revenue Higher volumes in most markets and strongly improved pricing $million FY23 FY24 Change % Commentary Europe 5.5 6.1 11% Europe Australia 9.6 12.3 28% • Revenue up 11%, driven by higher volumes Rest of World 4.6 2.7 (41%) • In-market v
Slide 19: Respiratory segment revenue
FY24 Full Year (unaudited results) Respiratory segment revenue Share growth in US drives 37% growth, weaker demand in other global markets $million FY23 FY24 Change % Commentary Europe 2.3 1.3 (44%) Europe Australia 3.8 3.1 (18%) • Lower demand from UK, Germany and Italy due USA 4.6 6.3 37% in part
Slide 20: Balance sheet and cashflow
FY24 Full Year (unaudited results) Balance sheet and cashflow Free cashflow improved $10.2 million Commentary $million FY23 FY24 Change Operating cashflow Operating cash flow (16.5) (10.8) 5.7 • Improved cash earnings • Disciplined working capital management Capital expenditure (7.7) (3.2) 4.5 • One
Slide 21: Capital Raise & Timetable
CAPITAL RAISE & TIMETABLE
Slide 22: Use of funds
Use of funds Targeted investment to accelerate Penthrox® growth Purpose A$m Targeted investment in growth initiatives including: $6.5m • Evidence generation • Support local and international knowledge exchange • Expansion of commercial investment in Australia as strategy is progressed Working Capita
Slide 23: Capital raising overview
Capital raising overview • A fully underwritten capital raising of approximately $10.0 million comprising: - An institutional placement of New Shares to eligible investors to raise approximately $5.5 million Offer size and structure - A 1-for-7.35 pro-rata accelerated non-renounceable entitlement of
Slide 24: Indicative timeline
Indicative timeline 1 Event Date / Time Trading halt, announcement of raise Friday, 26 July 2024 Announcement of completion of Placement and Institutional Entitlement Offer and Tuesday, 30 July 2024 recommencement of trading Record date for Entitlement Offer 7.00pm Tuesday, 30 July 2024 Retail Entit
Slide 25: Key risks
Key risks The Company has limited financial resources and may need to raise additional funds from time to time to finance the continued development and commercialisation of its technology / products and its other longer-term objectives. The Company’s ability to raise additional funds will be subject
Slide 26: Key risks (continued)
Key risks (continued) The Company’s manufacturing operations must meet regulatory requirements of the market to which product is supplied. As such, there is a risk that operations and compliance Manufacturing may present technical difficulties or cost more than expected. Technical difficulties could
Slide 27: Key risks (continued)
Key risks (continued) The Company intends to operate a significant amount of its key activities through a series of contractual relationships with licensees, independent contractors and suppliers. All Dependence on of the Company’s contracts carry a risk that the third parties do not adequately or f
Slide 28: International Offer Restrictions
International Offer Restrictions This document does not constitute an offer of new ordinary shares (“New Shares”) of the Company in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Shares may not be offered or sold, in any
Slide 29: International Offer Restrictions (continued)
International Offer Restrictions (continued) United Kingdom Neither this document nor any other document relating to the offer has been delivered for approval to the Financial Conduct Authority in the United Kingdom and no prospectus (within the meaning of section 85 of the Financial Services and Ma
Slide 30: Underwriting Agreement Summary
Underwriting Agreement Summary Pursuant to the Underwriting Agreement the Underwriter has agreed to fully underwrite the Placement and the Entitlement Offers, subject to the terms of the Underwriting Agreement. The Underwriting Agreement contains customary representations, warranties and undertaking
Slide 31: Underwriting Agreement Summary (continued)
Underwriting Agreement Summary (continued) (h) the Company is prevented from issuing the Offer Shares within the time required by applicable laws; (i) director or officer of the Company is charged with an indictable offence, engages in any fraudulent conduct, or disqualified from managing a corporat
Slide 32: Underwriting Agreement Summary (continued)
Underwriting Agreement Summary (continued) (f) ny contract, deed or other agreement of the Company which is material to the making of an informed investment decision in relation to the Offer is terminated, rescinded, a altered or amended without the prior written consent of the Underwriter (g) there
Slide 33: Appendices
APPENDICES
Slide 34: Penthrox overview
Penthrox overview ® Efficacy, safety and administration benefits of Penthrox® deliver positive patient outcomes and lower overall customer costs1-5 • Inhaled needle-free analgesic 1 The iconic Green Whistle • Non-opioid1 • Portable, self administered device1 • Effective pain relief within 6–10 breat
Slide 35: Reconciliation between underlying EBITDA and net loss after tax
Reconciliation between underlying EBITDA and net loss after tax $million FY23 FY24 Notes FY24 Underlying EBITDA (15.1) (8.2) 1. An acceleration of share-based payment expense of $5.1m relating to the cancellation of all share options held Depreciation and amortisation expense (3.1) (3.4) by the CEO
Medical Developments International — Investor Presentation (July 2024) on 6ix