AFT Pharmaceuticals Ltd (ASX: AFP)Share Price and News
About AFT Pharmaceuticals (ASX:AFP)
AFT Pharmaceuticals Ltd (ASX: AFP) is a leading Australian-based pharmaceutical company focused on the development, marketing, and distribution of prescription and over-the-counter medicines. The company operates globally, with products reaching markets in Australia, New Zealand, and several international territories. It made $195.4m in FY24, representing a CAGR growth of 18% in 5 years.
What sets AFT apart in the industry is its ability to launch and manage a diverse portfolio of products. The company has successfully marketed a range of pharmaceuticals and consumer health products, with a strong focus on quality and patient well-being. Its expansion into both local and international markets has solidified its position as a significant player in the sector.
The company's flagship medicine is Maxigesic. Maxigesic is a pain-killing drug that combines two popular OTC analgesics, paracetamol and ibuprofen, into a unique patented formulation. It is licensed in over 100 countries all up, in tablet, IV and oral (i.e. drink) forms, for the treatment of mild to moderate pain experienced post-operations.
AFT Pharmaceuticals' Company History
AFT Pharmaceuticals was founded in 1997 by Dr Hartley Atkinson, a pharmaceutical entrepreneur. It began as a small local business that imported and distributed other company’s medicines. The Atkinsons are still involved with the business and own a majority stake in it.
In 2009, the company commercially launched Maxigesic, which is its flagship medicine, developed in-house through R&D. The company is best known for Maxigesic, but also in-licenses and distributes over 100 other pharmaceutical products in pain relief, eyecare, allergy relief, digestive health and skin care in dozens of countries across the world.
The company went public in 2015, listing on the Australian Stock Exchange (ASX) under the ticker symbol AFP. Since then, AFT has expanded its presence in international markets, with a particular focus on the Asia-Pacific region. The company has also made significant strides in establishing a strong position in the United States market, a key growth driver for its future.
Future Outlook of AFT Pharmaceuticals (ASX: AFP)
Looking ahead, AFT Pharmaceuticals is poised for growth, with strong revenue and earnings forecasts, bolstered by its international expansion and a robust pipeline of new products. It is planning to reach $300m in rolling annual revenue by the end of FY27 - nearly double FY24 levels.
The company has made significant progress in enhancing its manufacturing capacity, which will help meet the growing demand for its products in global markets. In addition, AFT’s focus on expanding its portfolio with new and innovative treatments, such as over-the-counter pain relief and sleep aids, should support its long-term growth.
Sector trends point toward a growing demand for pharmaceuticals as the global population ages, with increasing incidences of chronic conditions. This trend bodes well for AFT’s future, particularly in international markets, where demand for quality healthcare products is rising. Additionally, AFT’s strategic partnerships and acquisitions continue to expand its market reach and product offerings.
Despite these growth prospects, AFT Pharmaceuticals faces challenges, including market competition, regulatory hurdles, and the impact of economic fluctuations. And of course, the failure to reach the $300m rolling revenue goal for any (or all) of the aforementioned reasons is a risk in and of itself, for investors dislike it when companies miss projected estimates.
However, the company’s proactive approach to innovation and market diversification positions it well for continued success.
Is AFT Pharmaceuticals (ASX: AFP) a Good Stock to Buy?
We think the stock’s recent performance and growth prospects make it an attractive option for investors seeking exposure to the pharmaceutical industry.
The company has a proven track-record of success and has returned to profitability after several years of 'going for growth' post its IPO. It is now a dividend payer and has commercialised its own products, plus it has an extensive R&D pipeline.
Our Stock Analysis
Its reporting season in New Zealand in May and these 5 ASX companies are about to report annual results
Its always reporting season in New Zealand in May as well as November, because many companies there follow an April…
The 2024 Pitt Street Research Life Sciences Conference is coming up! And you’re invited!
The Pitt Street Research Life Sciences Conference is happening on September 19, 2024! The Life Sciences sector in Australia and…
AFT Pharmaceuticals (ASX:AFP): A gem of a dual-listed healthcare company
AFT Pharmaceuticals (ASX:AFP) may not spring to mind as the best company to have come out of New Zealand. Many…
Frequently Asked Questions
AFT Pharmaceuticals' dividend yield is less than 1% as it has only paid dividends twice (at the end of FY23 and FY24) and it was just 1c per share - both representing yields of 0.29% and 0.54% respectively. Its policy is to pay 20-30% of (normalised) NPAT.