MVP Announces Outcome of Balance Sheet Review
16 July 2021
ASX ANNOUNCEMENT
MVP Announces Outcome of Balance Sheet Review
Medical Developments International Ltd (ASX: MVP) today announced that following its annual asset impairment review, it expects to recognise a non-cash charge of $7.5 – 8.5 million (after tax) within the Group’s 30 June 2021 accounts.
MVP’s respiratory business has been adversely impacted in FY21 by the COVID19 pandemic, moderating our growth outlook and resulting in an impairment of the associated intangible assets.
While MVP remains convinced that its Flow technology will deliver long-term value beyond the manufacture of Penthrox, we have not yet unlocked this value. As such, the asset has been impaired. MVP will continue to pursue licensing and other opportunities for the technology.
The review entailed a comprehensive assessment of our balance sheet assets. Encouragingly, the assessment strongly supported the carrying value of MVP’s Penthrox related assets.
For further details please refer to the following link – ASX Announcement – Outcome of Balance Sheet Review