Sharechat Logo

AFT Pharmaceuticals expects to break even this year despite launch delays

Friday 3rd August 2018

Text too small?

AFT Pharmaceuticals, which makes the Maxigesic painkiller, continues to target reaching breakeven by the end of this financial year regardless of whether it obtains any additional licensing income. 

In the last financial year to the end of March, its loss narrowed to $12.7 million from $18.4 million,

Chair David Flacks told shareholders at the annual general meeting in Auckland today that Maxigesic is now licensed in 125 countries – up from 110 at the end of its 2017 financial year – and the company is registered and selling Maxigesic in 10 countries.

In speech notes posted on the stock exchange, he said negotiating a licensing agreement “can take considerable time,” with the registration process alone taking six months to three years.

“We had hoped that towards the end of the last financial year that we might have secured one or two significant licensing deals – but we are being very careful to ensure that we sign with the right partners,” he said, adding that a number of parties are currently doing due diligence.

In a PowerPoint presentation, the company said “numerous” registrations are underway but “launches have been delayed due to regulatory procedures in EU.” It provided no further detail. 

However, “as previously indicated to the market, we are targeting reaching breakeven by the end of this financial year, and we remain confident of doing so irrespective of whether we receive any additional licensing income this year,” said Flacks. 

AFT held cash and equivalents of $6.8 million as at March 31. A $7.1 million net drawdown on its loan with shareholder Capital Royal Group (CRG) helped keep the coffers full.

Flacks also told shareholders that CRG offered a new five to six-year term to extend the existing capital facility and to expand the available capital to between US$40 million and US$50 million.

“The company will update the market if it agrees to take up this option,” he said.

As of March 31, AFT owed CRG $30.7 million.

The shares last traded down 2.1 percent at $2.30 and are up 2.2 percent this year. 


  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

PFI doubles 2018 profit on valuation gains, underlying earnings fall short
Steel & Tube turnaround continues with 49% jump in first-half net profit
February 18th Morning Report
FIRST CUT: Port of Tauranga lifts 1H profit 4%
NZ dollar starts the week with a tailwind as positive US-China trade talks boost sentiment
Tax Working Group's capital gains proposal keenly awaited
MARKET CLOSE: NZ shares dip as global trade jitters weigh on A2, F&P
NZ dollar set for weekly gain after Reserve Bank surprise
Burger Fuel exploring sale after review questions listing merits
New net migration data to remain rubbery for quite some time

IRG See IRG research reports