Medical Developments International Ltd (MDDVF) (Half Year 2026) Earnings Call Highlights: …

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Thu, February 19, 2026 at 4:00 PM GMT+9 4 min read

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**Group Revenue:** Up 8%.

**Pain Management Revenue:** Up 18%.

**Respiratory Business Revenue:** Down 10%.

**Operating Cash Flow:** Improved by $1 million, resulting in positive cash flow.

**EBIT and NPAC:** Improved by $0.5 million excluding foreign exchange movements.

**Penthrox Volume Growth:** Stronger volumes reported across all regions.

**Cash at End of Period:** $16.9 million.

**Australian Hospital Segment Growth:** Up 26%.

**US Respiratory Revenue:** Down 16%.

**Free Cash Flow:** Improved.

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Release Date: February 19, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Group revenue increased by 8%, with pain management revenues up 18%, indicating strong growth in this segment.

Positive operating cash flow was reported, showing an improvement of $1 million compared to the previous period.

Progress in regulatory approvals for Penthrox's paediatric label in Europe, which is expected to broaden the addressable market.

Successful transition of supply in France and Switzerland to partners, expected to accelerate product penetration and reduce costs.

Encouraging volume growth for Penthrox in all regions, supported by initiatives like the MAGPIE study and real-world evidence generation.

Negative Points

Respiratory business underperformed with revenues down 10%, primarily due to challenging market conditions in the US.

EBIT and NPAC were slightly down compared to the prior period, impacted by foreign exchange movements.

Lower average transfer prices in Europe due to the transition to partner supply, resulting in flat revenue for the region.

Seasonally softer demand conditions in the respiratory segment are expected to result in lower earnings in the second half of FY26.

Increased costs in product manufacturing and staff, with inflation and strategic headcount additions impacting financials.

Q & A Highlights

Q: Please comment on the early successes, including unit growth or otherwise from your partner in France. A: Brent MacGregor, CEO: We are encouraged by the performance of our French partner, Ethypharm. They fully engaged their field team by September-October, and we’ve seen a 10% increase in volume compared to the prior period. The paediatric indication has already been approved by French authorities, and we anticipate continued growth in the second half of the year.

Q: What prepositioning sales are being done by your distributors to assist the introduction of Penthrox across ambulance services once paediatric use is approved? A: Brent MacGregor, CEO: Our partner Galen, covering the UK, Ireland, and the Nordic region, has been preparing extensively. They have trained their sales force and developed collateral, ready to engage with ambulance services once approvals are finalized. They have been informing ambulance trusts about the progress of approvals, particularly in the UK, which is our second-largest market.

Story Continues  

Q: Can we assume that most of the cash had been received for the rest of the world shipment given the strong Penthrox unit growth? A: Anita James, CFO: Yes, it’s reasonable to assume that a good portion of the cash has been received in the first half. We also had timing with order shipments to France for Ethypharm, which were paid in the half. Some shipments made in November and December will likely see cash flow in the second half.

Q: Can you explain why gross margins are lower today than they were in 2015 given today’s much higher volumes and the introduction of continuous flow manufacturing? A: Anita James, CFO: The business structure has changed significantly since 2015. Previously, we had arrangements with partners that included upfront milestones, which affected revenue reporting. The business is now larger, with a different product portfolio, and we’ve exited the vet business. It’s challenging to compare directly, but we’re happy to discuss this further offline.

Q: What steps are being undertaken to achieve best-in-class manufacturing and staff costs, so pricing is not the only lever for revenue growth? A: Anita James, CFO: We focus on tight working capital management and strategic headcount control, with investments in commercial and medical activities. Efficiency improvements are coming from increased volumes, and while manufacturing costs are up due to higher volumes, we are committed to reducing unit costs and enhancing efficiency.

Q: What do you believe is driving the disconnect between the market value of the company and the future strategy you have communicated? A: Brent MacGregor, CEO: It’s a challenge we recognize. Despite showing progress in our quarterly reports, it hasn’t translated into share price increases. We understand the market may have anticipated higher growth rates, but we are committed to our strategic approach and confident in our progress. We hope continued communication and execution will positively influence market perception.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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