Wee update from BP and a few snips "MVP has significantly...

Wee update from BP and a few snips

"MVP has significantly de-risked over last few months Progress on several fronts recently have de-risked MVP in our view. These include a) clarification of path and timelines to removal of clinical hold with the FDA and progressing towards US approval for Penthrox; b) Development path mapped out for China with Phase 1 and Phase 3 trials to run in parallel, targeting approval in CY21. IND approval for China is imminent; c) Improvement in in-market sales in UK, with focus now on growing revenue rather than formulary inclusion; d) Launch in Italy potentially marking an end to ongoing delays in broader EU roll out, with the rest of EU to follow in 12-18 months and e) validation of long term EU potential for Penthrox with inclusion of the product in EUSEM guidelines as first line treatment for moderate to severe trauma pain. We view this as a key milestone for MVP. Clinical data also continues to stack up in favour of Penthrox vs. other standard of care drugs for trauma pain, which we view as incrementally positive for the company."

"PT lifted to $6.95,

Retain Buy Following changes to our model, the net result is our NPAT forecast for FY20 increasing by 4%. Changes to our NPAT forecasts for FY21-22 were not material. The short term increase in NPAT and longer term impact of increased revenue forecasts for Penthrox for China (improved POS to 50%) and reducing the WACC used in our DCF to 10.4%, has led to an increase in our valuation for MVP. Our price target for MVP has lifted by ~14% to $6.95 (was $6.08). We retain Buy on MVP. Next catalysts: AGM update on 30th Oct’19,IND approval for China (Nov’19), ~US$5m milestones from Mundipharma in CY20, refiling of US IND for Penthrox by mid-CY20 and outcome of lidocaine commercial discussions in FY20."