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Medical Developments International Limited
MVP Details
FY21 Key Results Highlights: Medical Developments International Limited (ASX: MVP) is involved in the manufacturing and distribution of drugs – mainly Penthrox and medical and veterinary equipment.
Revenue Highlight (Source: Analysis by Kalkine Group)
Key Risks: Due to COVID-19 panic buy in FY20, a depressed market has been caused for the FY21 demand. Also, less community movement, improved community hygiene practices and milder cold affect the sales of Respiratory products.
Outlook: Despite COVID-19 impact, MVP expects an increase in sales in UK, France & domestic market with a revised clinical trial to FDA, USA for FY22. With the improvement in existing products, its focus for future years is on developing new products in Penthrox & Respiratory in both the segments.
Valuation Methodology: EV/Sales Multiple Based Relative Valuation (Illustrative)
Analysis by Kalkine Group
*% Premium/(Discount) is based on our assessment of the company’s NTM trading multiple after considering its key growth drivers, economic moat, stock's historical trading multiples versus peer average/median, and investment risks.
Stock Recommendation: The stock is trading lower than the average 52-week price level band of $3.21 and $7.29 with a negative return of -50.42% in the past nine months. The stock has been valued using the EV/Sales multiple based illustrative relative valuation method and arrived at a target price with an upside of low double-digit (in % terms). The company can trade at a slight discount to its peers’ average, considering losses in FY21, and higher marketing expenses as a result of growth in Penthrox® sales. For the purpose of valuation, peers like Starpharma Holdings Ltd (ASX: SPL), Vita Life Sciences Limited (ASX: VLS), and others have been considered. Considering the company’s future products innovation and its expansion, current trading levels, valuation, and key risks associated with the business, we give a “Speculative Buy” rating on the stock at the current market price of $3.33 as on 8 September 2021, 10:30 AM (GMT+10), Sydney, Eastern Australia.
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MVP Daily Technical Chart, Data Source: REFINITIV
Medlab Clinical Limited
MDC Details
FY21 Key Results Highlights: Medlab Clinical Limited (ASX: MDC) is a biotechnology company predominately working in two segments: Nutraceutical and Pharmaceutical Research.
Revenue Highlight (Source: Analysis by Kalkine Group)
Key Risks: The company’s expansion in countries like USA and UK, gives a foreign currency headwind. Clinical trials approvals from other countries’ governments are subject to the success of safety profile and efficacy of NanaBis.
Outlook: With the Phase III trials approval for NanaBis, research collaboration and discussions for 36 patents offerings of NanoCelle with an addressable market of USD $260bn are also lined up.
Valuation Methodology: EV/Sales Multiple Based Relative Valuation (Illustrative)
Analysis by Kalkine Group
*% Premium/(Discount) is based on our assessment of the company’s NTM trading multiple after considering its key growth drivers, economic moat, stock's historical trading multiples versus peer average/median, and investment risks.
Stock Recommendation: The stock has provided a return of ~11.11% for past three months and -33.33% over the nine months. It is trading below than the average 52-week price level band of $0.135 and $0.42. The stock has been valued using the EV/Sales multiple based illustrative relative valuation method and arrived at a target price with an upside of high double-digit (in % terms). The company can trade at some discount to its peers’ average, considering its risks associated with currency fluctuations and government regularity risks domestically and internationally. For the purpose of valuation, peers like Immutep Ltd (ASX: IMM), Clinuvel Pharmaceuticals Ltd (ASX: CUV), CSL Ltd (ASX: CSL), and others have been considered. Considering the company’s rise in FY21 revenue, global expansion, current trading levels, valuation, and key risks associated with the business, we give a “Speculative Buy” rating on the stock at the current market price of $0.185, as on 8 September 2021, 10:30 AM (GMT+10), Sydney, Eastern Australia.
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MDC Daily Technical Chart, Data Source: REFINITIV
Note 1: The reference data in this report has been partly sourced from REFINITIV
Note 2: Investment decisions should be made depending on the investors' appetite for upside potential, risks, holding duration, and any previous holdings. Investors can consider exiting from the stock if the Target Price mentioned as per the analysis has been achieved and is subject to the factors discussed above alongside support levels provided.
Technical Indicators Defined: -
Support: A level where-in the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.
Resistance: A level where-in the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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