Medical Developments International Ltd

MVP Details

Approval for Penthrox and Milestone payments: Medical Developments International Ltd (ASX: MVP) announced that it has received final approval from the Medicines and Healthcare Products Regulatory Agency to market and sell its inhaled analgesic product, Penthrox for trauma and associated pain in the United Kingdom. This will provide the opportunity for its UK partner Galen Ltd the opportunity to start selling the drug with immediate effect. In terms of the distribution and licensing agreement, the approval means that the company will receive a milestone payment of GBP 450,000 in the first half of FY 2016.

Results (Source: Company Reports)

The approval will also serve as a trigger for final approval in France and Ireland; and once approval from France is received, the company is entitled to a further milestone payment of USD 3 million. The first firm order totals USD 0.9 million with deliveries commencing in January 2016 and the partner has submitted further forecast orders in excess of USD 1.3 million. Speaking at the AGM, the chairman pointed out that the future for Penthrox appeared to be bright. A number of significant milestones were achieved in FY 2015. A world class regulatory dossier has been created for Penthrox which will form the basis for regulatory approval all over the world. Licensing deals have been agreed with a number of globally recognised partners to enable the sale of the product in new countries. The two standouts are Galen, which has lodged its first forecast orders and paid an upfront fee for distribution in the UK and Ireland; and Mundipharma, a top 20 global pharmaceutical company which has made a significant upfront financial commitment to sell the product in Europe. Both companies should start contributing to the financial results by the second half of FY 2016. The respiratory business continues to grow throughout the world and for the first time the operations in North America should deliver substantial sales growth in the near term.

Sales and Operating Expenses (Source: Company Reports)

Stock Performance: MVP stock has risen 185.19% year to date (as at November 27, 2015) and we have little doubt that the company has a promising future. Nonetheless, the stock is trading close to its 52-week high price and a P/E ratio of about 150, and therefore, looks expensive at the current price levels.

MVP Daily Chart (Source: Thomson Reuters)

Veda Group Ltd

VED Dividend Details

Binding Agreement with Equifax: Veda Group Ltd.’s (ASX: VED) board of directors has announced that the company has entered into a binding agreement with Equifax Inc by which Equifax will acquire all the shares of the company by way of a scheme of arrangement at a price $ 2.825 in cash and a scheme implementation deed has been signed to facilitate the transaction. Shareholders will be entitled to receive the payment in cash subject to all applicable conditions being satisfied or waived and the scheme being implemented. Due diligence has been completed. The board has recommended that shareholders vote in favour of the scheme and enumerated the reasons for doing so. The offer of $ 2.825 per share is an attractive premium of 41.6% over the previous closing price of $ 1.995 on 17 September 2015, the last trading day prior to the announcement of Equifax’s original Expression of Interest. The offer also represents a 33.9% premium over the one month VWAP and 28.5% premium over the three month VWAP. The offer price is also the highest share price since the IPO and represents a 12.1% premium over the highest prior closing price of $ 2.52 on 26 March 2014. The offer is at a multiple with a P/E of 32.2x and EV/EBITDA multiple of 18.1x. Finally, the cash consideration provides shareholders with certainty of value and the opportunity to realise their investment for cash.

Performance (Source: Company Reports)

An independent expert has been appointed to determine whether the scheme is fair and reasonable and in the best interests of shareholders, and the report will be distributed to shareholders in December 2015.

Stock Performance: VED stock has surged about 28.37% in the last three months (as at November 27, 2015). We also note that the share is presently trading at a price which is close to the Equifax’s offer price and is also close to the 52-week high price, thus, seems to be short of great returns. Also to be borne in mind is that the raised Equifax offer proposal is subject to few procedural requirements including regulatory approvals and due diligence. Overall, we believe that the stock is expensive at the moment.

VED Daily Chart (Source: Thomson Reuters)

1-Page Ltd

1PG Details

Accelerated market strategy and winning new deals: 1-Page Ltd (ASX: 1PG) updated about Starbucks signing to 1PG’s sourcing platform for getting access to about 30,000 prospective candidates for barista roles in two major US cities. The company also came up with the successful completion of its fully underwritten equity placement and pursuant to the institutional placement, approximately 11.1 fully paid ordinary shares will be issued at a price of $ 4.50 per share to raise additional capital of approximately $ 50 million. CEO Joanna Weidenmiller said she was pleased with the success of the institutional placement and the introduction of several new high-quality institutional investors. The company has also announced the launch of an accelerated go to market strategy using curated talent pools. Curated talent pools are generating significant traction and scale with existing customers while speeding up the sales process in the pipeline of potential customers. The addition has resulted in a much higher potential contract size boosting the long-term value of contracts due to the nature of pools generated on current open roles in any enterprise.

Account Distribution (Source: Company Reports)

The Sourcing Platform leverages more than 1 billion professional profiles with enriched data from numerous online sources. The platform allows companies to source candidates from their own employers networks and display a selection of the most connected and qualified employees to the workforce of the company. It also allows the hiring team to contact, attract and engage the most valuable passive candidates at scale. The pools are pre-curated talent pools with identified prospective candidates based on the specific requirements required to fill these open positions and which have the greatest affinity for the client. The minimum expected contract size for the average enterprise with 1000 employees is expected to be USD 300,000 and this is only for an estimated 25 open roles demonstrating the significant opportunities to scale. The priority clients are clients with more than 10,000 employees who will typically have 1000 to 10,000 open roles every month.

Stock Performance: 1PG stock has risen 196.30% year to date (as at November 27, 2015). We have no doubts about the potential prospects of the platform but consider that the current pricing of the stock is expensive.