- 01European Penthrox volumes rose 37%; Australian hospital demand climbed 24%.
- 02Quarterly revenue fell to $10.2m; operating cash outflow narrowed to $329,000.
- 03CFO Anita James is interim CEO; Labatec partnership expands into MENA.
Medical Developments International (ASX: MVP) has reported 37% growth in European in-market Penthrox volumes during the September quarter, supported by expanded paediatric use of its non-opioid pain relief product.
Australian hospital demand also strengthened, with Penthrox volumes rising 24% compared with the corresponding quarter a year earlier.
Group revenue nevertheless declined by $700,000 to $10.2 million as earlier distributor inventory stocking affected shipments and respiratory sales weakened in Australia.
The quarterly update coincides with a leadership change, with chief financial officer Anita James taking over as interim chief executive officer following Brent MacGregor’s decision to step down.
Local Volume Rises
Pain Management generated $7.6m in quarterly revenue, down $300,000 year on year, despite a 10% increase in volumes shipped into Australia on stronger ambulance and hospital demand.
Shipments to Europe and other international markets fell against a comparison period boosted by inventory stocking, partly associated with the July 2025 change to partner supply in France.
European use has benefited from approval allowing Penthrox to be administered to children from six years of age, providing a broader market for the product.
“In-market Penthrox demand has been strong, particularly in Europe, where the recently approved paediatric label is driving increased use,” interim chief executive officer Anita James said.
“While group sales revenue for the quarter was slightly down on the prior year, in line with expectations, tight cost and working capital management delivered improved operating cash flows.”
Cash Outflows Narrow
The Respiratory division contributed $2.6m, a decline of $400,000, with softer Australian demand linked to a mild winter and fewer respiratory conditions while United States revenue remained broadly steady.
Net operating cash outflow improved to $329,000 from approximately $800,000 a year earlier as lower inventory purchases reduced payments to suppliers and employees.
Customer receipts totalled $9.7m, compared with $11.2m in the prior corresponding quarter, while payments to suppliers and staff fell to $10.1m from $12.1m.
After investing and financing outflows and foreign exchange movements, cash stood at $20.6m on 30 September, compared with $21.4m at the beginning of the quarter.
New Markets and Clinical Evidence
An August health economic study published in Emergency Medicine Australasia found that Penthrox use in hospital emergency departments could deliver department-wide cost and operational savings.
Medical Developments plans to draw on that evidence to support hospital adoption locally and commercialisation in overseas markets alongside its expanded European paediatric indication.
The business has extended its existing partnership with Labatec beyond Switzerland into the Middle East and North Africa, creating a wider framework for regional distribution.
For the 2027 financial year, Medical Developments expects higher in-market Penthrox demand and stable Respiratory demand, although the prior year’s inventory stocking benefits are not expected to recur.
Its outlook includes approximately $1m in amortisation associated with European paediatric registration costs, while potential earnings impacts from Middle East supply disruptions and United States tariffs remain uncertain.
Leadership Changes Announced
Mr MacGregor, who has led the business for six years, will remain in an advisory capacity until 15 November to assist the transition, while the board searches for a permanent replacement.
Ms James assumed the interim role on 15 October and will retain her existing remuneration arrangements, with her appointment intended to preserve operational continuity.
“I am returning to North America, where my family is based, confident that the business is in excellent hands,” outgoing chief executive officer Brent MacGregor said.
Chair Mark Fladrich credited Mr MacGregor with improving margins, cash generation and Penthrox adoption, and pointed to recent paediatric approvals in the UK and EU as foundations for further growth.
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