overview

Here is another small biotechnology company getting its acts
together with the price showing value for investors.

Yesterday, Medical Developments International Ltd (ASX:MVP)
reported it intends to implement a share-buy back scheme in order to best
utilise its strong cash flows.
MVP chairman David Williams explained that "this scheme will
enable us to take advantage of MVP's strong operating cash flows to the
benefit of all shareholders.
"In addition to the cash inflows, MVP is debt-free and currently
maintains a $2 million facility, so the proposed buy-back will not affect
our ability to support international marketing and registration
activities or any capital expenditure required to meet higher demand."
The on-market buy back will commence on November 26 and continue
for up to six months or until the funds allocated to the buy-back are
exhausted.
The maximum number of shares to be bought back will be the number
that can be purchased with the allocated funds of $500,000.
Medical Developments International is a leader in emergency pain
relief and respiratory products.
The company manufactures a fast-acting pre-hospital and emergency
pain relief product called Penthrox.
It is used in all Australian Ambulance services, the Australian
Defence Forces, sports medicine, dentistry and for analgesia during short
surgical procedures.
On Wednesday, the company held its annual meeting which initially
underlined that the board was conscious that the MVP share price had
underperformed the market and its pharma/biotech peers.
On the positive side, the company has a product in the market;
has no debt; it is making profits with cash in the bank and the company
offers have plenty of upside.
Net profit for FY08 was below FY07 even though revenue was up,
but MVP invested significantly in registrations, international market
development, regulatory development, and marketing, which had an impact
on profit.
Some of the company's business development has been slower than
hoped, due to the complexities of international markets; but all is still
on track for significant business expansion and profit growth over the
next few years.
The company is on very sound footing operationally and
financially and is cautiously optimistic that FY09 will see a significant
improvement in revenue, profits and company growth.
"We have already made public statements about the key drivers of
future growth - Middle East sales, New Zealand sales, veterinary use, and
including our products in doctors bags under the PBS," Mr Williams said.
"All of these possibilities are well advanced."
CEO Chris Rossidis said FY08 had been a watershed year for MVP as
it made significant advances in many areas.
The strategy in FY08 was to focus on activities that would
deliver long-term sustainable growth, and this continues to be the
motivation and direction for management in FY09.
"Our business objectives for FY09 are for double-digit growth for
our core business in Australia and NZ and the expansion in sales in
Penthrox and Medical Devices overseas," Mr Rossidis said.
"We expect that profit in FY09 will grow substantially from FY08
as costs are expected to be stable as a proportion of revenue and no
significant one off costs are expected as was experienced in the FY08."
Highlights in FY08 include:
* Sales growth - increase in sales (24 per cent) Penthrox growth
of 36 per cent driven by aesthetics, dentistry and hospitals in
Australia, ambulance and hospitals in New Zealand and launch and sales in
the Middle East;
* Registration program expansion - Penthrox submitted for
registration in 11 new countries in FY08. It is currently under review in
18 countries;
* Continued development of the Penthrox clinical program -
long-term safety study in WA, bone marrow biopsy study at the Peter Mac,
emergency medicine study in Belgium;
* Veterinary registration of Methoxyflurane in the US - audit of
manufacturing facility in FY08 came at a significant cost - US FDA
inspection of MVP manufacturing plant completed early in calendar 2008,
approval expected very shortly;
* Submission to the Pharmaceutical Benefits Authority (PBS) for
Penthrox to be used in general practice through doctor's bag inclusion;
* Successful three-year extension of the PHARMAC (NZ
reimbursement authority) tender for MVPs range of asthma products; and
* Growth of the MVP oxygen range of products by 28 per cent.
The company's strategic direction for FY09 is to:
* Maximize sales of Penthrox in Australia through local
partnerships and PBS listing, in NZ to increase usage in the ambulance
service and hospitals;
* Middle East, through continued promotion;
* Launch into new countries;
* Registration program expansion - submit for Penthrox
registration in new countries;
* Asia, South America and Eastern Europe;
* Western European strategy - continue the development of the
Penthrox clinical program;
* Maximize the sales of Methoxyflurane for veterinary use in the
USA; and
* Expansion of sales of the asthma range of products into new
countries - European, South America and Asia.

SHARE PRICE MOVEMENTS
*********************

Shares of Medical Developments yesterday traded steady at 23c.
Rolling high for the year was 47.5c and low 20c. No dividend is paid. EPS
1.6c and p/e ratio is 14.38. The company has 56.9 million shares on issue
with a market cap of $13.1 million.
The 2008 financial year saw a 24 per cent increase in sales for
Medical Developments International.
Net profit was reduced to $891,000 on the back of significant
activities around registration, marketing and other expenditure.
The emphasis in FY08 has been a commitment to progress and
deliver on important milestones that will create a solid platform for the
further growth of the company.
There was growth of sales in New Zealand with the integration of
Penthrox into the treatment protocols in the ambulance service.
Sales in the Devices division grew by 10 per cent, underpinned by
our strong position in the asthma market in NZ and our strong marketing
partnership in Australia.
Further penetration into the Asian market was difficult in FY08;
however sales grew in territories such as Singapore.
In addition, the company experienced 28 per cent growth in our
oxygen equipment business, driven mainly by its emergency services
customers.
MDI expects further growth in FY09 following the recent
appointment of an emergency services representative who is an expert in
resuscitation.

BACKGROUND
**********

Medical Developments International Ltd was listed on the
Australian Stock Exchange on December 15, 2003.
The company's major activity is in the production and supply in
emergency pain relief and respiratory products.
MVP manufactures a pre-hospital and emergency pain relief product
called Penthrox.
It is used in all Australian ambulance services, the Australian
Defence Forces, Sports Medicine, dentistry and for analgesia during short
surgical procedures.
Operations are focused on lead analgesic drug, methoxyflurane.
The drug is delivered through the Penthrox inhaler and provides
pain relief following five or six breaths. Benefits of the inhaler are
cost advantages over gas-based products, minimal training is required, no
cross infection risk and it is a simple hand-held device.
The medical and veterinary equipment business designs and
distributes equipment, products and devices for asthma management, oxygen
delivery and anaesthetics.
Products for asthma include the Space Chamber spacer,
Breath-Alert Peak flow meters, oxygen resuscitation equipment, the Clare
ventilator and the KAB Carbon Dioxide Absorber.
The product range includes Komesaroff Anaesthetic machines used
for providing oxygen, removing carbon dioxide and maintaining blood
concentrations of anaesthetic agents.
The breath alert breathing monitor, an audiovisual monitor of
breathing rhythms for animal and biopsy punches used for removal of
sample of tissue.