- Medical Developments International (MVP) shares dropped into the red after the company reported a $12.6 million loss during the 2021 financial year
- The loss was driven by goodwill impairment charges, stemming from slow progress on its CSIRO project and a “difficult” period for the respiratory segment
- Gross revenue grew nine per cent on the prior corresponding period, from $23.6 million to $25.7 million
- Medical Developments International shares closed down 3.23 per cent to trade at $3.90 on August 25
Medical Developments International (MVP) shares dropped into the red after the company reported a $12.6 million loss during the 2021 financial year.
The company’s slim profits from last year, which totalled $400,000, were hampered further by goodwill impairment charges on its CSIRO project and medical devices segment.
MVP is in the process of developing alternative manufacturing methods for generic Active Pharmaceutical Ingredients in the ‘Continuous Flow Technology Project’ with Commonwealth research agency, CSIRO.
The company said progress on the project had been slower than anticipated and therefore failed to secure licences or commercial-scale production level estimates.
“As a result, MVP has booked a pre-tax impairment provision for $4.3 million in relation to the capitalised development costs on the basis that future economic benefit is not assured,” the company said in a statement.
MVP affirms it remains confident in the project and will continue to work with CSIRO.
Meanwhile, MVP said COVID-19 had made it a “difficult” period for its respiratory sales due to a milder flu season, resulting in an FY21 impairment charge of $4.7 million.
Despite incurring a loss, the ASX-lister said it anticipated strong sales growth in FY22 driven by its expansion into Europe.
Gross revenue grew nine per cent on the prior corresponding period, from $23.6 million to $25.7 million.
Medical Developments International shares closed down 3.23 per cent to trade at $3.90 on August 25.