Last close As at 05/08/2026
NZD4.75
▲ −0.03 (−0.63%)
Market capitalisation
NZD499m
Research: Healthcare
While AFT continues to gain commercial traction from Maxigesic/ Combogesic IV sales in the US (launched by partner Hikma in Q1 CY24) and anticipates the launch of Crystaderm in China, a strong R&D pipeline is central to AFT’s long-term growth ambitions. AFT recently announced the seventh addition to its R&D portfolio, a non-invasive topical alternative treatment for keloid and hypertrophic scarring, addressing the limited treatment algorithm for keloid scars (raised, thickened scars). This development collaboration is with Massey Ventures and the Gillies McIndoe Research Institute, and continues AFT’s initial collaboration with these parties from 2022, for the treatment of strawberry birthmarks.
Written by
AFT Pharmaceuticals |
Expanded R&D pipeline to fuel LT growth |
R&D update |
Pharma and biotech |
29 April 2024 |
Share price performance
Business description
Analysts
AFT Pharmaceuticals is a research client of Edison Investment Research Limited |
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While AFT continues to gain commercial traction from Maxigesic/ Combogesic IV sales in the US (launched by partner Hikma in Q1 CY24) and anticipates the launch of Crystaderm in China, a strong R&D pipeline is central to AFT’s long-term growth ambitions. AFT recently announced the seventh addition to its R&D portfolio, a non-invasive topical alternative treatment for keloid and hypertrophic scarring, addressing the limited treatment algorithm for keloid scars (raised, thickened scars). This development collaboration is with Massey Ventures and the Gillies McIndoe Research Institute, and continues AFT’s initial collaboration with these parties from 2022, for the treatment of strawberry birthmarks.
Year end |
Revenue (NZ$m) |
PBT* |
EPS* |
DPS |
P/E |
Yield |
03/22 |
130.3 |
18.9 |
19.2 |
0.00 |
16.0 |
N/A |
03/23 |
156.6 |
16.7 |
11.0 |
1.10 |
27.9 |
0.4 |
03/24e |
187.5 |
22.3 |
15.5 |
1.55 |
19.8 |
0.5 |
03/25e |
223.5 |
26.3 |
18.2 |
1.82 |
16.9 |
0.6 |
Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.
While details on the compound being developed under the collaboration are undisclosed at present, the initial focus will be on finalising the drug substance (active pharmaceutical ingredient). AFT will then assume responsibility for manufacturing and toxicology studies, followed by clinical development. The keloids and hypertrophic scars treatment market was valued by Zion Market Research at US$6.7bn in 2022 and is estimated to reach US$15.9bn by 2030. AFT’s program in this indication will be the seventh addition to the company’s R&D pipeline, which consists of programmes for burning mouth syndrome, strawberry birthmarks, vulva lichen sclerosis; its candidate eye drop for antibiotic resistant eye infections; its NasoSURF drug delivery system; and its Pascomer treatment for Port Wine Stains. We note that four of the seven R&D projects are topical treatments.
Keloids and hypertrophic scars result from abnormal wound healing in predisposed individuals following surgery, injury or burns. Keloids are the more problematic of the two as they tend to extend beyond the boundaries of an injury and may cause pain and itching. The available mainstay treatment modalities (wound care dressings, laser treatments, corticosteroids, surgical excision) have limited effectiveness and/or high recurrence rates. While topical creams are available (such as imiquimod 5% cream), these are typically used post-excision and have limited efficacy. AFT’s topical treatment aims to target the underlying condition by regulating the skin healing process to prevent excessive collagen deposits, which make up the scar.
An active R&D pipeline is central to AFT’s long-term expansion plans (R&D-related expenses were NZ$7m in H124) and we see the new addition as supporting this vision. In the near term, we expect traction to come from Maxigesic/Combogesic IV sales in the US (launched by partner Hikma in Q1 CY24) and the anticipated launch of Crystaderm in China. We also look forward to the launch of Maxigesic Rapid in the US (expected to launch in FY25, the 12-month period ending March 2025). The drug received FDA approval in March 2023.
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Research: Financials
On 18 April, AGBA announced a surprise deal to acquire 100% of Triller Corp, a global AI-driven social video platform, in an all-stock transaction. Triller is privately-owned but has been independently valued at US$3.2bn. AGBA’s management is using a US$4bn valuation for the combined entity, in which AGBA shareholders will own 20% and Triller shareholders 80%. Triller recorded FY23 revenues of US$45m on 450m user accounts and 2.2m creators but is loss-making. In FY23, AGBA reported revenues of US$54m and 400,000+ clients. The combined group expects synergies from expanding and marketing to Triller’s users and utilizing Triller’s AI, natural language processing (NLP) technology and digital marketing capabilities to drive growth in its Asian investment advisory business and fintech investments.