Latest news with #HartleyAtkinson
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
RNZ News
21-05-2025
- Business
- RNZ News
AFT Pharmaceuticals profit drops despite sales up 10 percent
Drug maker AFT Pharmaceuticals has reported a drop in full year profit. Photo: OKSANA KAZYKINA/123RF Drug maker AFT Pharmaceuticals has reported a drop in full year profit as a series of one-off items offset record sales of its range of painkiller products. Key numbers for the year ended March compared with a year ago: The Auckland based maker of the Maxigesic pain killer reported solid growth in its key home markets of Australia and New Zealand which underpinned the business. However, the result were marred by disruptions in the first half of the year including a doctors' strike in South Korea and large customers not ordering as they used up excess stock, as well as lower income from licensing arrangements. Sales in Australia grew 17 percent, lifting its operating earnings by 65 percent, while New Zealand sales were up 10 percent, and it had modest growth in Asia. Managing director Hartley Atkinson said they had sacrificed some short term earnings growth to push its strategy of higher sales in key markets, as well as developing new products. "We have significantly advanced our strategy to extend our reach across multiple geographies and added to our research and development (R&D) pipeline." He said the company was making market gains with new forms of its Maxigesic painkiller, an antiseptic cream in China this year, and the establishment of operations in more countries in Europe, North America, South Africa, and UK. "We have a roadmap for growth in each of these markets founded on a portfolio of our own products and medicines we are in-licensing. "Our approach to these new markets avoids an over-exposure to the US and at present we do not see a significant impact of new US tariffs to our business," Hartley said. AFT said it was aiming to break the $300m sales mark in 2027, and an operating profit of $20m-$24m in the coming year. Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
