23 Nov 2023

AFT Pharmaceuticals reports increased revenue

12:30 pm on 23 November 2023
AFT Pharmaceuticals narrowed its half-year loss.

Photo: 123RF

The maker of the Maxigesic pain relief medication says demand for the drug is strong with the company reporting higher bottom line profit and revenue.

AFT Pharmaceuticals said sales from existing, new products and product royalties grew by 24 percent, with the Maxigesic family of pain relief medicines and its Australian over-the-counter business making the strongest contribution.

Key numbers for the six months ended September compared with a year ago:

  • Net profit $1.8m vs $1.5m
  • Revenue $83.6m vs $65.8m
  • Operating profit $3.3m vs $3.5m

Its operating profit was lower as it invested in new product licensing, research and development, and marketing.

The company expected growth for the year ending March to continue in the second half.

"The ongoing roll out of Maxigesic and its line extensions and the launch of new products in Australasia, coupled with increasing rates of growth in other markets around the world, position the company well for the remainder of the financial year and beyond," managing director Hartley Atkinson said.

"Our goal of $200 million in annual revenue on a moving annual total is in sight. We continue to target operating profit to range between $22m to $24m."

However, Atkinson said the guidance was subject to the company's strategy to commercialise Maxigesic Rapid in the US.

Last month, the US Food & Drug Administration approved the sale of the intravenous form of Maxigesic. Its US licensee Hikma Pharmaceuticals was targeting a launch towards the end of the current financial year or the start of the new year, it said.

The launch of the medicine would trigger a US$6m (NZ$9.9m) license fee to be shared with its development partner Hyloris.

AFT expected to declare a dividend for the full year, but did not provide dividend guidance.

It declared its maiden dividend last year.