Latest news with #AFTPharmaceuticals
News.com.au
27-05-2025
- Business
- News.com.au
Biocurious: Forgotten trans-Tasman ‘small Big Pharma' takes on the big boys with a niche strategy
AFT Pharmaceuticals has zeroed in on multiple diseases the big pharma plays don't bother with – but can be highly profitable AFT has targeted boosting its revenue from NZ$200 million to NZ$300 million within the next two years Some AFT investors are tetchy about substandard returns, but co-founder Hartley Atkinson insists the company is focused on long-term growth When Dr Hartley Atkinson and his nurse wife Marree founded AFT Pharmaceuticals (ASX:AFP) in their Auckland garage with NZ$50,000 ($45,000) in 1997, their many detractors said big pharma would shut down the enterprise within months. 'Everyone said I was an idiot because the big guys would squash us, but we are still here almost three decades on,' Atkinson says. Hartley describes AFT as a 'small Big Pharma' that does its own drug development and clinical trials. Now valued at $260 million in the Aussie lingua franca, the trans-Tasman has refined the art of zeroing in on areas of medical needs which the big players have ignored. 'There are quite big holes because Big Pharma will focus on the really big markets – and there's nothing wrong with that,' he says. 'But there are $750 million to $1 billion markets where patients really need treatments. The pharma market is big enough for everyone.' Hartley is familiar with the whiles of Big Pharma, having been medical director at the Swiss based Roche. 'I learned all about clinical trials from the Swiss, who are pretty clever with these things.' AFT last week reported record revenue of NZ$206 million and is confident of hitting its 'aspirational' target of $NZ300 million within two years. Taking on Big Pharma AFT sells more than 100 products in 80 countries, with distribution or licensing agreements taking the reach to 100. AFT's offerings cover categories including pain, eyecare, dermatology, gut disorders, medicated vitamins and hospital injectables. AFT's 'hero' products are the ibuprofen-paracetamol combination Maxigesic and Hylo, the country's biggest-selling lubricating eye drop. 'People would assume Hylo is owned by the ophthalmology behemoth Alkine, but it's us,' he says. 'We also have the number one over-the-counter combination painkiller and it's not own by Sanofi or Reckitt Benckiser.' About 70% of AFT's products (and revenue) are from over-the-counter products, with hospital and prescription drugs accounting for the rest. 'When an over-the-counter patent runs out, sales will continue,' Atkinson says. 'But in the case of a successful drug, a legion of generic competitors will quickly emerge.' AFT is a 'virtual' company in that it outsources all drug manufacturing. 'We don't own a factory or a warehouse, we are capital light,' Atkinson says. 'Instead, we spend all our money on drug development and sales and marketing.' In the pipeline AFT spends about $NZ12-15 million annually on research and development – about 12% of revenue – and currently has about 13 R&D projects on the go. Of these, five are largely completed and eight are underway. AFT's 'agnostic' program covers dermatology indications including keloid scars, strawberry birthmarks and port wine stains. In partnership with Belgium's Hyloris Pharmaceuticals, the company is developing a novel injectable iron therapy that targets a US$3.2 billion global market. Iron deficiency affects about 15% of the world's population - and is a sector taregted by ASX biotech big daddy CSL (ASX:CSL) since its contentious 2022, $18 billion purchase of Vifor Pharmaceuticals. AFT has carried out multiple projects with Hyloris, which involve AFT having carriage of the preclinical and clinical work. These programs include remedies for burning mouth syndrome (a post-menopause condition) and the chronic skin condition vulvar lichen sclerosus. Both of these diseases have no treatments. Keeping it in house AFT also runs its own studies and eschews contracted research bodies because they are too expensive. The company does many of its trials in Eastern Europe. 'We run them very cost effectively,' Atkinson says. 'The US Food & Drug Administration audited us for two weeks solid and no question asked.' When formulating trials, AFT works closely with doctors close to the action. 'Inclusion criteria is important; they might tell you won't get any patients for the study it will take forever.' AFT is not fazed by large-scale studies. For instance, its iron deficiency program is being supported by a phase III trial, enrolling about 1000 patients in the US, Europe, India and China. China: seductive but dangerous As the world's second-biggest drug market, China holds an allure – and danger – that make Homer's Sirens look like rank amateur seductresses. 'We believe you can't ignore China, whereas a lot of just go to the US,' Atkinson says. Of the 19 Chinese deals by western parties in 2024, AFT did two of them. This included launching the antiseptic cream Crystaderm. In the meantime, AFT isn't ignoring the 'complex' US market. On Trumpian shores it has a licensing pact with HICMA, the third biggest supplier of hospital injectables. During the year AFT launched Maxigesic tablets in the US, having already introduced the intravenous version. 'Being small, we just try to fit in with the system,' Atkinson says. 'We can't influence anything, so we just try to find out how things work and adjust.' Focused on growth AFT last week posted full-year turnover of $NZ208 million, a 6% increase. Operating profit came in at NZ$17.6 million, as per guidance but down 27% year on year. Net profit declined 23% to NZ$12 million. Performance was crimped by some significant 'one off' events flagged in the first half, including destocking by customers and the prolonged doctors' strike in South Korea. Except for a small raising during the pandemic, AFT has not raised capital since listing in December 2015. Most of AFT's revenue derives from Australia and NZ, but Atkinson expects Asia to be the company's biggest market within five years. Research and development is funded by retained profits, rather than fresh capital. This has stymied earnings growth, but the company does pay a small dividend. Atkinson admits that this approach has depressed profits – to the chagrin of some long-term holders who have seen their shares decline 13% over the last year and 40% over the past five years. He assures disgruntled shareholders that the two founders have more skin in the game than a tattoo artist - and won't waste their own money. 'I do my own laundry when I travel, silly little things like that.' Sorry bros, Aussie's the go Defying the Russell Crowe syndrome, New Zealand claims AFT as its own even though Atkinson was born in Perth. Indeed, AFT remains headquartered at Takapuna – Auckland's Northshore. Adding to AFT's Kwidentials, NZ's Accident Compensation Corporation has built a 5% holding. That said, Atkinson may struggle with Auckland border control next time he re-enters the country. ' is a lovely place to live with nice scenery, but we stress the 'Australasian' part,' he says. 'Australia has treated us better than NZ to be honest. There's a greater appreciation of R&D and innovation.' Despite multiple advances from parties including private equity, Atkinson and Marree are keen to maintain their 70% holding, although the usual 'never say never' rule still applies. 'It's good to maintain that entrepreneurial spirit,' Atkinson says. 'We are still focusing on the big picture and are keen to take our shareholders along for the ride.'
Scoop
25-05-2025
- Business
- Scoop
AFT And Hikma Extend US Maxigesic Cooperation
Press Release – AFT Pharmaceuticals The agreement will see Hikma take over all channels for Combogesic Rapid in the US apart from the license granted to Alexso for certain specific market categories allowing both forms of AFTs patented medicines to be marketed across the entire … AFT Pharmaceuticals (NZX:AFT, ASX:AFP) today announces it has extended its US Maxigesic® licensing agreement with Hikma Pharmaceuticals. The new agreement is aimed to maximise the commercial and patient care benefits that come with following the intravenous form of the pain relief medicine (marketed as Combogesic® IV in the US) in postoperative care with the tablet form of the medicine (Combogesic Rapid). The agreement will see Hikma take over all channels for Combogesic Rapid in the US — apart from the license granted to Alexso for certain specific market categories — allowing both forms of AFT's patented medicines to be marketed across the entire US market. The US is the world's largest market for pain relief1. AFT and Hikma have also agreed to a restructure of the profit share arrangements for Combogesic IV and tablets. The agreement amends the previous profit share which featured a fixed specified profit amount before sharing commenced, to now being a regular quarterly profit share payment. AFT will be more involved in the sales and marketing planning for Combogesic IV and Rapid, also making a contribution towards marketing. AFT sees potential for the new agreement to deliver greater commercial benefits than envisaged by the original agreements with Hikma2, one of the largest suppliers of injectable medications by volume in the US. AFT Pharmaceuticals Managing Director Dr Hartley Atkinson said: 'We are pleased to have reached this agreement with Hikma. Since the launch of Maxigesic IV last year, feedback from the market is that clinicians wish to follow non-opioid intravenous relief of mild to moderate pain with the tablet therapy – an approach that offers non opioid relief through all stages of recovery. 'The extension of the agreement with Hikma will allow delivery of this therapeutic option more effectively across the US. In so doing, we can not only help clinicians to offer comprehensive non-opioid pain relief, but we can also maximise the opportunity we see for both medicines in this market.' Dr Atkinson said he looked forward to progress with the two medicines in the US. 'US healthcare costs associated with opioid abuse are estimated at US$11 billion a year3. With 6% of patients administered an opioid postoperatively going on to consume the medicine chronically4, the two forms of Combogesic offer clinicians an opportunity reduce the risks associated with the effective management of post operative pain.' Notes: 1) 2) The intravenous licensing agreement provided for upfront, regulatory, and commercial milestone payments of up to US$18.8 million (of which US$6 million was received in 2024) for the commercialisation of Combogesic IV as well as a profit share from in market product sales. Milestones remain unchanged. These payments were to be shared with AFT and it development partner Hyloris Pharmaceuticals. AFT did not disclose commercial terms other than a profit share arrangement for the Combogesic Rapid agreement with Hikma. 3) annually 4) About AFT Pharmaceuticals AFT is a growing New Zealand based multinational pharmaceutical company that develops, markets, and distributes a broad portfolio of pharmaceutical products across a wide range of therapeutic categories which are distributed across all major pharmaceutical distribution channels: over the counter (OTC), prescription and hospital. Our product portfolio comprises both proprietary and in-licensed products, and includes patented, branded, and generic drugs5. Our business model is to develop and in-license products for in our markets of Australia, New Zealand, Singapore, Malaysia, Hong Kong, USA, Canada, EU ex Ireland and UK, and to out license our products to local licensees and distributors to over 125 countries around the world. For more information about the company, visit our website
Scoop
25-05-2025
- Business
- Scoop
AFT And Hikma Extend US Maxigesic Cooperation
AFT Pharmaceuticals (NZX:AFT, ASX:AFP) today announces it has extended its US Maxigesic® licensing agreement with Hikma Pharmaceuticals. The new agreement is aimed to maximise the commercial and patient care benefits that come with following the intravenous form of the pain relief medicine (marketed as Combogesic® IV in the US) in postoperative care with the tablet form of the medicine (Combogesic Rapid). The agreement will see Hikma take over all channels for Combogesic Rapid in the US — apart from the license granted to Alexso for certain specific market categories — allowing both forms of AFT's patented medicines to be marketed across the entire US market. The US is the world's largest market for pain relief1. AFT and Hikma have also agreed to a restructure of the profit share arrangements for Combogesic IV and tablets. The agreement amends the previous profit share which featured a fixed specified profit amount before sharing commenced, to now being a regular quarterly profit share payment. AFT will be more involved in the sales and marketing planning for Combogesic IV and Rapid, also making a contribution towards marketing. AFT sees potential for the new agreement to deliver greater commercial benefits than envisaged by the original agreements with Hikma2, one of the largest suppliers of injectable medications by volume in the US. AFT Pharmaceuticals Managing Director Dr Hartley Atkinson said: 'We are pleased to have reached this agreement with Hikma. Since the launch of Maxigesic IV last year, feedback from the market is that clinicians wish to follow non-opioid intravenous relief of mild to moderate pain with the tablet therapy – an approach that offers non opioid relief through all stages of recovery. 'The extension of the agreement with Hikma will allow delivery of this therapeutic option more effectively across the US. In so doing, we can not only help clinicians to offer comprehensive non-opioid pain relief, but we can also maximise the opportunity we see for both medicines in this market.' Dr Atkinson said he looked forward to progress with the two medicines in the US. 'US healthcare costs associated with opioid abuse are estimated at US$11 billion a year3. With 6% of patients administered an opioid postoperatively going on to consume the medicine chronically4, the two forms of Combogesic offer clinicians an opportunity reduce the risks associated with the effective management of post operative pain.' Notes: 1) 2) The intravenous licensing agreement provided for upfront, regulatory, and commercial milestone payments of up to US$18.8 million (of which US$6 million was received in 2024) for the commercialisation of Combogesic IV as well as a profit share from in market product sales. Milestones remain unchanged. These payments were to be shared with AFT and it development partner Hyloris Pharmaceuticals. AFT did not disclose commercial terms other than a profit share arrangement for the Combogesic Rapid agreement with Hikma. 3) annually 4) About AFT Pharmaceuticals AFT is a growing New Zealand based multinational pharmaceutical company that develops, markets, and distributes a broad portfolio of pharmaceutical products across a wide range of therapeutic categories which are distributed across all major pharmaceutical distribution channels: over the counter (OTC), prescription and hospital. Our product portfolio comprises both proprietary and in-licensed products, and includes patented, branded, and generic drugs5. Our business model is to develop and in-license products for in our markets of Australia, New Zealand, Singapore, Malaysia, Hong Kong, USA, Canada, EU ex Ireland and UK, and to out license our products to local licensees and distributors to over 125 countries around the world. For more information about the company, visit our website
Yahoo
24-05-2025
- Business
- Yahoo
The AFT Pharmaceuticals Limited (NZSE:AFT) Annual Results Are Out And Analysts Have Published New Forecasts
AFT Pharmaceuticals Limited (NZSE:AFT) missed earnings with its latest annual results, disappointing overly-optimistic forecasters. Results look to have been somewhat negative - revenue fell 3.2% short of analyst estimates at NZ$208m, and statutory earnings of NZ$0.11 per share missed forecasts by 3.3%. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. Taking into account the latest results, the current consensus from AFT Pharmaceuticals' dual analysts is for revenues of NZ$245.5m in 2026. This would reflect a meaningful 18% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to jump 36% to NZ$0.16. Before this earnings report, the analysts had been forecasting revenues of NZ$255.9m and earnings per share (EPS) of NZ$0.18 in 2026. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a real cut to earnings per share estimates. Check out our latest analysis for AFT Pharmaceuticals The analysts made no major changes to their price target of NZ$3.70, suggesting the downgrades are not expected to have a long-term impact on AFT Pharmaceuticals' valuation. Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We can infer from the latest estimates that forecasts expect a continuation of AFT Pharmaceuticals'historical trends, as the 18% annualised revenue growth to the end of 2026 is roughly in line with the 16% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 30% annually. So although AFT Pharmaceuticals is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider industry. The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for AFT Pharmaceuticals. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. The consensus price target held steady at NZ$3.70, with the latest estimates not enough to have an impact on their price targets. Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for AFT Pharmaceuticals going out as far as 2028, and you can see them free on our platform here. You can also view our analysis of AFT Pharmaceuticals' balance sheet, and whether we think AFT Pharmaceuticals is carrying too much debt, for free on our platform here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
23-05-2025
- Business
- Yahoo
AFT Pharmaceuticals Ltd (ASX:AFP) FY2025 Earnings Call Highlights: Surpassing Revenue Targets ...
Revenue: $208 million, exceeding $200 million target. Local Operations Sales (Australia and New Zealand): Almost $181 million. Profit Growth in Australia: Increased by 65%. Sales Growth in Australia: 17% increase to $127 million. Sales Growth in New Zealand: 10% increase, surpassing $50 million. Operating Profit: Down $6.5 million to $17.6 million, impacted by lower licensing income. Net Debt: Reduced to $14.5 million from $16.2 million the previous year. Dividend Payment: Increased from 1.6cps to 1.8cps. R&D Spend: $15 million, with a focus on eight R&D projects. Gross Profit from Product Sales and Royalties: Grew 14.5%, ahead of revenue growth of 11%. FY26 Guidance: Anticipated operating profit in the range of $20 million to $24 million. Warning! GuruFocus has detected 1 Warning Sign with ASX:AFP. Release Date: May 21, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. AFT Pharmaceuticals Ltd (ASX:AFP) achieved sales of $208 million, surpassing the $200 million mark, with strong performance in Australia and New Zealand. The company is expanding its global footprint, with operations in Europe, the UK, North America, Asia, and South Africa, aiming for breakeven in the UK this financial year. AFT Pharmaceuticals Ltd has a robust R&D pipeline with eight patented products and additional off-patent injectables, indicating strong future growth potential. The company reduced its net debt from $16.2 million to $14.5 million, showing effective financial management despite significant investments. Dividend payments increased from 1.6cps to 1.8cps, reflecting a commitment to returning value to shareholders. Operating profit was down by $6.5 million to $17.6 million, primarily due to an $8 million decrease in licensing income. Significant investments in new affiliates in North America, the UK, and South Africa have led to increased operating expenses. The international segment reported an operating loss, with ongoing investments needed to achieve future revenue growth. R&D expenses are expected to remain high, with around $15 million projected for the next year, impacting short-term profitability. The company faces challenges in achieving its ambitious revenue target of $300 million by FY27, requiring a 20% CAGR over the next two years. Q: Can you quantify the losses in your start-up businesses in the UK, North America, and South Africa for the reported year? A: Malcolm Dennis Tubby, CFO: We've invested around $2.5 million into these start-up businesses this year. Additionally, there are further marketing costs associated with these businesses. Q: What is the expected R&D expenditure for FY26, and how does it compare to the previous year? A: Malcolm Dennis Tubby, CFO: The total R&D spend is expected to be around $15 million, similar to this year. Approximately $6 million to $7 million will go into the P&L, with the rest capitalized. Q: What underpins your guidance for FY26, given the expected R&D expenditure and revenue growth? A: Malcolm Dennis Tubby, CFO: We anticipate growing the operating profit by about 25%, which will be reflected through the P&L. We expect revenue and gross profit growth, with marketing expenses growing in line with that. Q: How confident are you in achieving the FY27 target of $300 million in revenue, and what factors contribute to this confidence? A: Hartley Campbell Atkinson, CEO: The target is based on significant contributions from new offices and affiliates, such as launches in South Africa, Canada, and the UK. We also expect continued growth in Australia, New Zealand, and Asia. Q: Are you expecting EBIT margin expansion in Australia and New Zealand for FY26? A: Malcolm Dennis Tubby, CFO: Yes, we expect a small EBIT margin expansion in Australia and New Zealand. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
