AFT In-Licenses NovaTears(R) in Australia and New Zealand

Market release
21 March 2017

AFT Pharmaceuticals In-Licenses NovaTears® in Australia and New
Zealand

AFT Pharmaceuticals (AFT) has completed a licensing agreement with Novaliq, a
German specialty pharmaceutical company, to distribute NovaTears® in Australia and
New Zealand.

NovaTears® is an ophthalmic product for the treatment of evaporative dry eye diseases
(DEDs) developed by Novaliq and sold across Europe under the brand name
EvoTears®.

Under the terms of the agreement, Novaliq has granted AFT an exclusive license for
the commercialisation of NovaTears® across Australasia. In return for these rights,
Novaliq will receive an undisclosed upfront payment and royalties on net sales of
NovaTears®.

“AFT is dedicated to bringing innovative products to market that make a real difference
to people’s health,” said Dr Hartley Atkinson, CEO of AFT.

“The addition of NovaTears® to our eye care line will be welcomed by doctors and
patients alike. It’s a first-in-class, water-free and preservative-free treatment based on
Novaliq’s proprietary EyeSol® technology platform. NovaTears® supports the lipid layer
of the tear film by its ability to quickly spread and be absorbed into the eye. We believe
that this feature - combined with its small droplet size - will provide superior benefits to
patients with evaporative dry eye disease.”

“This will also help advance our position in the lubricating eye drop market where
currently AFT holds the number 4 position in both Australia and New Zealand. This
also fits with our strategy of strengthening our market position in categories where we
already hold a significant position. Sales from the New Zealand market are expected

to be achieved within the FY2018 financial year, and Australian sales the year
following,” said Dr Atkinson.

“Novaliq is delighted to collaborate with AFT, a leading and innovative pharmaceutical
company with a strong commitment to eye care,” said Christian Roesky, PhD, CEO of
Novaliq.

“NovaTears® provides a highly differentiated and clinically validated treatment option
that significantly improves the signs and symptoms of evaporative DED and Meibomian
gland dysfunction (MGD), highly underserved diseases. We are confident that dry eye
patients in Australasia will greatly benefit from the use of NovaTears® and our
partnership with AFT.”

[End of release]

For more information:
Hartley Atkinson
Managing Director, AFT Pharmaceuticals Ltd
Phone: +64 9 488 0232



About NovaTears®
NovaTears®, the first product developed and commercialized that incorporates
Novaliq’s proprietary EyeSol® technology, is an innovative multi-dose, non-aqueous
and preservative-free topical eye drop for the lubrication of the ocular surface. The
NovaTears® droplet forms a thin and smooth protecting film supporting the lipid layer
in its function to prevent tear evaporation for the relief of dry eye and irritated eye
symptoms. NovaTears® has been classified as a class IIa medical device and received
CE mark approval in Europe in July 2013. Open, prospective, uncontrolled post-market
clinical studies NT-001 and NT 002 successfully demonstrated tolerability and
significant improvement in signs and symptoms dry eye disease and Meibomian Gland
Dysfunction. All results of the study point towards excellent clinical performance, safety
and high convenience and acceptance of NovaTears® for patients suffering from hyper-
evaporative dry eye.

About AFT Pharmaceuticals – AFT founded in 1997 is an Auckland, New Zealand,
based pharmaceuticals company operating in Australia, New Zealand and the Pacific
Islands. AFT is listed on the Australian [ASX] and New Zealand [NZX] stock exchanges
since December 2015 and has significant local sales operations in Australasia together
with R&D activities in pain, orphan drugs and medical devices.

About Novaliq – Novaliq GmbH, founded in 2004, is a Heidelberg based specialty
pharmaceutical company focused on ophthalmology. Its mission is to transform poorly
soluble drugs into effective ocular therapeutics for both the front and the back of the
eye. Novaliq’s proprietary EyeSol® technology enhances the topical bio availability,

stability and safety of traditionally insoluble or unstable drugs improving the delivery,
efficacy and convenience of treatments for ocular surface diseases including dry eye
through preservative free and multi dose formulations. Novaliq’s most advanced
product is NovaTears® with CE-marking based on Novaliq’s proprietary EyeSol®
technology. NovaTears® is marketed under the brand name EvoTears® in Europe.