Medical Developments International (ASX:MVP) has reported a steady first-half performance for the financial year 2026, with growth in its flagship pain relief product helping to underpin revenue and cash flow despite softer conditions in its respiratory business.
The company said its strategy execution is gaining traction, as evidenced by stronger hospital demand, expanding clinical evidence, and progress toward regulatory milestones that could broaden the future market for Penthrox.
Group revenue for the six months to 31 December 2025 rose 8 per cent to $21.6 million, driven primarily by the Pain Management segment, where revenue increased 18 per cent. Penthrox sales were a key contributor, supported by higher Australian hospital volumes, stronger European demand, and improved pricing locally.
In Australia, hospital volumes climbed 26 per cent, reflecting ongoing work to secure formulary access, strengthen clinical engagement, and embed the product more firmly into treatment protocols.
European growth also contributed to the improved performance, with in-market volumes up 10 per cent. Demand was supported by underlying usage growth and inventory stocking in France following the company’s transition to a partner distribution model. At the same time, the regulatory pathway for expanding the product’s paediatric indication is progressing, with most European member states already granting approval and the remaining decisions expected by August 2026. The label expansion, if completed as planned, would significantly widen the addressable market.
The company recorded a small net loss after tax of $0.2 million, compared with a $0.3 million profit a year earlier. EBIT also slipped into a modest loss, largely due to foreign exchange effects, although underlying performance improved once currency movements were excluded. Importantly, operating cash flow turned positive and free cash flow improved, supported by stronger earnings from the pain business and lower capital expenditure.
While the respiratory segment weighed on overall results, with revenue down 10 per cent due to weaker US demand, management noted that pricing initiatives helped cushion the impact of higher input costs linked to tariffs. The company expects respiratory demand to remain seasonally softer in the second half, which may lead to lower earnings compared with the first half.
Looking ahead, Medical Developments says its focus is now firmly on accelerating Penthrox penetration and expanding its clinical positioning. A completed health economics study suggests the product can deliver operational and cost benefits across emergency departments, and its planned publication later in the financial year is expected to strengthen differentiation from standard treatments. The extension of PBS Prescriber Bag eligibility to nurse practitioners in Australia is also expected to support broader uptake.