Last close As at 05/08/2026
NZD4.75
▲ −0.03 (−0.63%)
Market capitalisation
NZD499m
Research: Healthcare
AFT Pharmaceuticals has announced the addition of another candidate, HY-091, to its R&D pipeline, for the management of vulvar lichen sclerosus (VLS), a skin condition with no curative treatments available. We note that HY-091 is one of the three R&D assets under diligence by AFT, with evaluation ongoing in another two. An active R&D pipeline is a key focus area for AFT, which will support management’s objective to expand its global footprint and achieve its long-term goal to have international markets represent 35% of sales (8% in FY23). HY-091 will be developed as a mucoadhesive film, an extended-release formulation of a known (albeit undisclosed) molecule, and will target alleviation of symptoms such as pain, itching and inflammation. The asset will be developed and commercialised in collaboration with Hyloris (existing partner for Maxigesic IV and HY-090) with similar collaboration terms for HY-090.
AFT Pharmaceuticals |
Another R&D asset in the bag |
Pipeline update |
Pharma and biotech |
22 January 2024 |
Share price performance
Business description
Analysts
AFT Pharmaceuticals is a research client of Edison Investment Research Limited |
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AFT Pharmaceuticals has announced the addition of another candidate, HY-091, to its R&D pipeline, for the management of vulvar lichen sclerosus (VLS), a skin condition with no curative treatments available. We note that HY-091 is one of the three R&D assets under diligence by AFT, with evaluation ongoing in another two. An active R&D pipeline is a key focus area for AFT, which will support management’s objective to expand its global footprint and achieve its long-term goal to have international markets represent 35% of sales (8% in FY23). HY-091 will be developed as a mucoadhesive film, an extended-release formulation of a known (albeit undisclosed) molecule, and will target alleviation of symptoms such as pain, itching and inflammation. The asset will be developed and commercialised in collaboration with Hyloris (existing partner for Maxigesic IV and HY-090) with similar collaboration terms for HY-090.
Year end |
Revenue (NZ$m) |
PBT* |
EPS* |
DPS |
P/E |
Yield |
03/22 |
130.3 |
18.9 |
19.2 |
0.00 |
19.6 |
N/A |
03/23 |
156.6 |
16.7 |
11.0 |
1.10 |
34.3 |
0.3 |
03/24e |
189.8 |
21.1 |
14.7 |
1.47 |
25.6 |
0.4 |
03/25e |
234.1 |
38.3 |
26.5 |
2.65 |
14.2 |
0.7 |
Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.
VLS is a chronic, inflammatory disorder, primarily affecting the anogenital area. It can impact people of all ages (including children) although postmenopausal women are the most predisposed. The male-to-female ratio varies between 1:3 and 1:10. The estimated prevalence is between 0.1% in children and 3% in women over 80 years, although we note that the condition remains underdiagnosed and undertreated. If left untreated, VLS is associated with elevated risk of genital cancer such as vulvar squamous cell carcinoma. There are currently no curative treatments available and current therapies are focused on managing pain and inflammation. The current gold-standard treatment is high-potency topical corticosteroids (prolonged use associated with systemic side-effects), followed by topical calcineurin inhibitors as second-line treatment. HY-091 will be developed as a first-of-its-kind, long-acting, extended-release alternative in the form of a convenient mucoadhesive patch. Details on the underlying drug compound have not been made public.
HY-091 will be developed by AFT in collaboration with Hyloris, its existing partner for Maxigesic IV and the R&D programme HY-090 in burning mouth syndrome. The terms of the agreement for HY-091 are similar to those for HY-090. While Hyloris will be responsible for product formulation, manufacturing and commercialisation in Europe, AFT will take care of clinical trials and related modalities, as well as commercialisation ex-Europe. The US activities will be co-managed by the two partners. A broad and diverse R&D pipeline is central to AFT’s international expansion plans, and we see this most recent addition as supporting the company’s efforts in this direction. Nearer term, we see the anticipated launch of Maxigesic IV in the US (planned for late FY24/early FY25) as a key upcoming catalyst.
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Research: Industrials
In September 2023, Accsys warned of weaker market conditions in the building materials and construction markets and in November, it stated not to expect trading conditions to improve materially until mid-CY24. For FY24–25, we have lowered our revenue estimates by 8–18% and EBITDA by 68–79%. The construction of the Accoya plant in the US is on schedule for operation by mid-CY24 and management will undertake a review of the viability of the Tricoya project in the UK in early CY24. Accsys raised €24m of new capital, largely for the completion of the plant in the US. On lower estimates, our discounted cash flow (DCF) points at a value per share of €0.86 (previously €0.93).