AFT Pharmaceuticals


Market CapNZD$388m

Last Close NZD$3.7

AFT Pharmaceuticals is a specialty pharmaceutical company that operates primarily in Australasia but has product distribution agreements across the globe. The company’s product portfolio includes prescription and over-the-counter (OTC) drugs to treat a range of conditions, and a proprietary nebuliser.

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Investment summary

AFT reported strong post COVID-19 revenue momentum in H123 (NZ$65.8m, 18.4% y-o-y growth), driven by robust organic growth across all regions, supported by new product launches. Sales uptake was boosted by robust demand from both domestic (23.5% growth in Australia, 34.7% in New Zealand) and Asian markets (26.1% growth). However, profits were weighed down (operating margin of 5.3% vs 9.9% in H122) by the delay in the anticipated licensing income from Hikma (c US$6m) and materially higher SG&A expenses related to new product launches. AFT expects FY23 revenue growth to be skewed towards H223 due to additional product launches, although margin pressures may carry over, as evidenced by a downward revision in FY23 operating profit guidance to NZ$18–23m (previously NZ$27–32m). Incorporating these developments, our valuation falls from NZ$681m or NZ$6.50/share to NZ$665m or NZ$6.34/share.

Y/E Mar
Revenue (NZ$m)
PBT (NZ$m)
EPS (c)
P/E (x)
P/CF (x)
2021A 113.1 11.8 8.2 7.1 52.1 N/A
2022A 130.3 21.4 18.9 19.2 19.3 31.5
2023E 152.2 21.3 17.6 13.4 27.6 20.6
2024E 189.7 35.0 31.3 21.7 17.1 45.4
Industry outlook

AFT is a multi-product company targeting pharmacy prescription, OTC and hospital markets. Data for Maxigesic offer it a competitive advantage in a fragmented industry.

Last updated on 30/11/2022
Content on AFT Pharmaceuticals
AFT Pharmaceuticals – H123 focused on portfolio expansion
Healthcare | research Update | 24 November 2022
AFT Pharmaceuticals – Further studies for Maxigesic IV’s US nod
Healthcare | research Flash note | 7 September 2022
AFT Pharmaceuticals – Collaboration for developing birthmark medicine
Healthcare | research Flash note | 2 September 2022
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Share price graph
Balance sheet
Forecast net debt (NZ$m) 16.6
Forecast gearing ratio (%) 24
Price performance
Actual (0.3) 5.7 (18.7)
Relative* (2.0) 7.5 (7.8)
52-week high/low NZ$4.5/NZ$3.1
*% relative to local index
Key management
David Flacks Chairman
Dr Hartley Atkinson CEO
Malcolm Tubby Chief Financial Officer
Michael Weinmann Member of the Board of Directors
Nathan D. Hukill Member of the Board of Directors