AFT updates operating profit guidance to $23m to $25m

AFT Pharmaceuticals Limited,
Level 1, 129 Hurstmere Road, Takapuna, Auckland 0622, New Zealand
Incorporated in New Zealand ARBN:
ARBN 609 017 969 investor.relations@aftpharm.com








16 February 2024
AFT updates operating profit guidance to $23m to $25m
AFT Pharmaceuticals (NZX: AFT, ASX: AFP) today announces an update to guidance
for the financial year to the end of March 2024 (FY 24).
The update follows a review of January trading and news that Hikma
Pharmaceuticals, the US licensee of Maxigesic
®
IV, has made its first sale of the
intravenous pain relief medicine, an event that triggers a US$6 million license fee
payment to AFT and its development partner Belgium’s Hyloris Pharmaceuticals.
AFT now expects FY 24 operating profit, including the company’s share of the license
fee (estimated at NZ$6 million), to range between $23 million to $25 million. AFT’s
earlier guidance for an FY 24 operating profit of $22 million to $24 million, excluded
the Hikma lic ense income and was subject to finalisation of the US commercialisation
plans, and the related investment costs, for Maxigesic Rapid, a prescription-only tablet
form of the pain relief medicine approved for sale in the US last year.
The company continues to expect to declare a dividend for FY24.
The new operating profit guidance, which represents an improvement over the $19.7
million operating profit posted in the year to the end of March 2023, follows lower than
forecast Australasian sales. This reflected some launch delays and slower than
forecast sales offtakes for newly launched products in these markets. It also reflects a
decision to take advantage of the Hikma license fee income to accelerate
investments for growth. These investments include:
• increased support for new product launches in Australasia and on e-
commerce;
• the launch of Maxigesic (Combogesic
®
) tablets in the UK;
• additional investments into AFT Pharm Europe for new products in that market
and the recruitment of an additional staff member;
• investments to support the US commercialisation of Maxigesic Rapid in the US
and our broader portfolio of medicines in Canada. This includes the formation
of AFT Pharmaceuticals Canada and, prior to the end of the financial year,
AFT Pharmaceuticals USA; and
• other market and research development projects.
AFT Managing Director Hartley Atkinson said: “Trading in Australasia, with some launch
delays and slower launch offtakes for new products have represented a headwind to
the company. After the license income, these weaker than expected sales represent
the largest factor in the change to the operating result.

AFT Pharmaceuticals Limited,
Level 1, 129 Hurstmere Road, Takapuna, Auckland 0622, New Zealand
Incorporated in New Zealand ARBN:
ARBN 609 017 969 investor.relations@aftpharm.com

“However, supported by our decades-long record of delivering steady growth in
Australasia, we remain confident of our prospects and the value of investing through
short term swings.
“Similarly, given our success in international markets we are confident in our ability to
take advantage of the strong potential we see for our portfolio of medicines around
the world. Given this outlook and the license fee gain, we have resolved it is in
shareholders’ interests to continue to significantly invest to support growth.
“In the current financial year, we have struck more than 109 in-licensing agreements
1

and expanded our product development portfolio, adding three new projects
including a topical treatment for strawberry birthmarks, a treatment for Burning Mouth
Syndrome and a treatment for Vulvar Lichen Sclerosus. We also have a further two
projects under consideration.
“We continue to invest to build the international infrastructure to support our growth.
This includes investments to significantly bolster our presence in the UK and Europe
and the establishment of an AFT presence in North America.
“The North American presence is aimed at supporting our US Maxigesic IV licensee,
advancing our plans for Maxigesic Rapid in the US, and exploiting the potential we
see for our broader portfolio of medicines in Canada. This represents a significant shift
in focus in the business over the last 12 months.
“All these growth initiatives come at the expense of short-term earnings so we are
pleased to be able to benefit from the one-off licensing income boost. We remain
confident these investments will reward shareholders over the medium to longer-term
and we look forward to providing a further more detailed update to shareholders
when we release our FY 24 results in May.”
Released for and on behalf of AFT Pharmaceuticals Limited by Malcolm Tubby, Chief
Financial Officer.

For more information:
Investors Media
Dr Hartley Atkinson Richard Inder
Managing Director The Project
AFT Pharmaceuticals Tel: +64 21 645 643
Tel: +64 9488 0232

About AFT Pharmaceuticals
AFT is a growing 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 drugs
2
. Our business model is to develop and in-license
products for sale by our own dedicated sales teams in our home markets of Australia

1

Counting one drug and one country as an agreement.

AFT Pharmaceuticals Limited,
Level 1, 129 Hurstmere Road, Takapuna, Auckland 0622, New Zealand
Incorporated in New Zealand ARBN:
ARBN 609 017 969 investor.relations@aftpharm.com

and New Zealand and in certain Southeast Asian markets, 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 www.aftpharm.com.