AFT Pharmaceuticals

[BlackPeter]

The other side of the coin, is the growing keenness to address  the US codeine use crisis will work for AFT.  Analgesics are the prescribed alternative to opioids.  As an aside this is something NZ is finally addressing too, as our overworked MDs have routinely doll out excessive amounts of codeine as a quick...fix. 

Not quite sure these are alternatives .... just get yourself some oral surgery, and you probably will find out that the doctor prescribes both to be taken concurrently (Paracetamol / Ibuprofen AND codein).

There are as well comments from the medical side not recommending it as alternative to codein:
https://www.9news.com.au/national/nuromol-not-alternative-to-codeine-says-pharmacist/086599f7-e8a3-47d1-a7a6-7f9086d106f2#:~:text=Although%2C%20Nurofen%20and%20Nuromol%20manufacturer,paracetamol%20(1000mg)%20combination%20analgesics.
Just for understanding - Nuromol is exactly the same stuff as Maxigesic, just coming from a better known manufacturer.

But it doesn't really matter - Paracetamol / Ibuprofen (which AFT likes to call Maxigesic) is a useful combination to manage pain, my point was just - it is in no way special to AFT. All big drug dealers offer this combination under various names, and the only thing which is different is the print on the box and potentially the price. However - Maxigesic was never particularly cheap - you can get the exact same medication from a generic manufacturer for 1/10th of the price.

Why would the US go for an unknown NZ manufacturer, if they have already plenty of alternatives from established drug companies? Just another "Me Too" - product.

[Ferg]

All big drug dealers offer this combination under various names

That's a pretty big claim...have you got a source for that?  Or do you mean all big drug companies that sell some sort of paracetamol and/or ibuprofen analgesics?  I'm aware there a number of drug companies who sell neither individually nor the two combined.  Here is a helpful list if you want to prove that claim:
https://en.wikipedia.org/wiki/List_of_largest_biomedical_companies_by_revenue

Cheers

[Left Field]

Sound result....

https://www.nzx.com/announcements/422198

HIGHLIGHTS
• Half-year operating revenue up 27% to $84 million, lifted by 24% growth in product sales and royalties across all channels and territories and $2.0 million of licensing income.
• Sales in International and Asian markets (excluding licensing income) rise 94%.
• Operating profit of $3.3 million down 6% following ongoing significant investment in research and development and marketing; spend is weighted toward 1H 24. EBITDA1 of $4.1 million down 8%.
• Net profit after tax increases 17% to $1.8 million;

[Minimoke]

Another announcement today from AFT on entering into another research project.

This may or may not lead to something. But I do like how they continue to keep share holders informed on their activities.

[Minimoke]

AFT today announce FDA has approved Maxigesic IV fro release into the USA - a Us$6.83b market.

Comes on top of approval for Maxigesic Rapid.

Just 5 months later AFT announc

"AFT Pharmaceuticals (NZX: AFT, ASX: AFP) announces Maxigesic IV(R), the patented intravenous form of its family of pain relief medicines, has today been launched in the US by its licensee Hikma Pharmaceuticals.

The launch of the medicine, under the brand Combogesic IV(R), is the first patented, New Zealand developed medicine with clinical studies in the world's largest healthcare market. The first commercial sale of the medicine in the
US is expected in the coming weeks, a milestone that will trigger a US$6 million licensee fee to AFT and its development partner Belgium's Hyloris Pharmaceuticals.

AFT expects its share of this license fee to accrue in the current financial year (estimated at around NZ$6 million)......"

[Left Field]

Minor upgrade....... hardly exciting.

https://www.nzx.com/announcements/426277

AFT updates operating profit guidance to $23m to $25m
AFT Pharmaceuticals (NZX: AFT, ASX: AFP) today announces an update to guidance for the financial year to the end of March 2024 (FY 24).
The update follows a review of January trading and news that Hikma Pharmaceuticals, the US licensee of Maxigesic® IV, has made its first sale of the intravenous pain relief medicine, an event that triggers a US$6 million license fee payment to AFT and its development partner Belgium's Hyloris Pharmaceuticals.

[winner (n)]

Minor upgrade....... hardly exciting.

https://www.nzx.com/announcements/426277

AFT updates operating profit guidance to $23m to $25m
AFT Pharmaceuticals (NZX: AFT, ASX: AFP) today announces an update to guidance for the financial year to the end of March 2024 (FY 24).
The update follows a review of January trading and news that Hikma Pharmaceuticals, the US licensee of Maxigesic® IV, has made its first sale of the intravenous pain relief medicine, an event that triggers a US$6 million license fee payment to AFT and its development partner Belgium's Hyloris Pharmaceuticals.

Update ....not really an upgrade

Just as well that license fee is coming through other wise it seems profit would have been $16m to $18m v guidance $22m to $24m

Still $23m pretty good compared to $20.4m two years ago and $19.7m last year ...but gobs comments above are interesting

[Minimoke]

Results out today.

First something that makes AFT very investable "We hire the 'best person' for the job, regardless of gender, age, and culture, and incentivise our people in a way that is aligned with the long-term success of the company"

Then. Revenue up, cost of sales up but gross progit up to $88.2m from $72.9m

Profit after tax UP to $15.6m from $10.6m

Current assepts $145m exeed curetn liablites of $46m. And I like how recievable exceed payables ($44m vs $33m)

Interest bearing debt down $4m to $28m

Despite paying down debt they are increasing divided from $0.011 to $0.16

$200m revenue target well within sight and $300m now new target.

Whats not to like? (Putting aside overweight ownership by one person)

[lorraina]

Pleasing to see they are now delivering on their promises.
 

[Left Field]

Just posting the link tp today's release 

https://www.nzx.com/announcements/431506

HIGHLIGHTS
 • Full-year operating revenue up 25% to $195.4 million, lifted by 20% growth in product sales and royalties across all channels and territories and $8.5 million of licensing income.
 • Sales in International and Asian markets (excluding licensing income) rise 70%.
 • Record EBITDA2 of $26.2 million up 22% and Operating Profit of $24.2 million up 23%.
 • Net profit after tax increases 46% to $15.6 million.
 • Net debt of $16.2 million down from $29.9 million at the end of FY23.
 • Dividend declared of 1.6 cents per share, (1.1 cents declared FY23).
 • Maxigesic® IV launched in the US in February 2024 following FDA approval. Advancing plans for the launch of the antiseptic cream Crystaderm® this calendar year in China, the world's second largest healthcare market.
 • Near term rolling twelve-month stretch revenue target of $200 million in touching distance and now focused on $300 million target.
 • FY 25 guidance for operating profit of $22 million to $25 million.

[BlackPeter]

Results out today.

First something that makes AFT very investable "We hire the 'best person' for the job, regardless of gender, age, and culture, and incentivise our people in a way that is aligned with the long-term success of the company"

Then. Revenue up, cost of sales up but gross progit up to $88.2m from $72.9m

Profit after tax UP to $15.6m from $10.6m

Current assepts $145m exeed curetn liablites of $46m. And I like how recievable exceed payables ($44m vs $33m)

Interest bearing debt down $4m to $28m

Despite paying down debt they are increasing divided from $0.011 to $0.16

$200m revenue target well within sight and $300m now new target.

Whats not to like? (Putting aside overweight ownership by one person)

Whats not to like?

Well, I guess most investors would need more than just a cheap anti wokie pleaser to consider a company as "investable".

While the SP wobbled up and down over the last 10 years full of promises, the share is now basically the same price as it was in late 2015. Did they ever pay dividends? Investors can't eat promises!

Their statement re selecting the right people stands next to all the promises they regularly make. Pretty mediocre management team, but they might be good in producing weak promises and anti wokie pleasers (which is easy and free)!

If the best people they hired happened to manage over 10 years to make no gain at all - maybe they should have just hired one person to bury the talent the company may or may not have had ...

Ah yes - and if I might direct your view to the SP trend - share is in a downtrend for the last 3.5 years or so.

Really - what's not to like?

Any moat you can see? Their cash cow hopeful is still just a mixture of generic paracetamol and generic Ibuprufen ... anybody can get the same effect without paying AFT's pharmacy prices ...

Anyway - good luck to investors ...

[BlackPeter]

On the other hand ... market takes - following these results - a huge leap upwards. At time of writing already 164 shares changed hands at 10am for $3 each and 2 (two) shares subsequently at 10:39 pushing the SP into the stratosphere: $3.04!

Somebody prepared to gamble the farm?

[Minimoke]

On the other hand ... market takes - following these results - a huge leap upwards. At time of writing already 164 shares changed hands at 10am for $3 each and 2 (two) shares subsequently at 10:39 pushing the SP into the stratosphere: $3.04!

Somebody prepared to gamble the farm?

Market may have been swayed by Nadia Farm

[Minimoke]

Well lets look at the chart then.

I agree. SP has gone now where since the beginning of this chart. But then  basically no one was investing in AFT until the 2020. Anyone investing prior to 2020 had loads of exit opportunities and make good coin (as evidenced by increased volume

I agree. Investing during covid times (early 2021 onwards) has been fraught with difficulty for many companies so AFT is not alone on that front.

Since you choose to use pejorative terms like "anti-woke" then I'l point you to HGH and SML to see how "woke" has served these companies.

I was posting about today's results. It wasn't a history lesson. And my question remains.

At the same time I take into account that wise advise - never buy in a down trend. Investors need to decide, on the basis of this news that May 2024 and macro / micro economic circumstances is the  "picking the bottom"

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[BlackPeter]

Since you choose to use pejorative terms like "anti-woke" then I'l point you to HGH and SML to see how "woke" has served these companies.

Agreed. I never said that ESG or anti-ESG statements from companies (i.e. no matter which side of the polarised world we live in one supports) add any value. Not for SML, not for HGH and not for AFT.

I was just surprised that you indicated this anti-woke statement from AFT makes them "investable"- or did I misread you post?

Anybody who wants to assess the quality of their management just needs to look at their historic performance ... and when you say that other companies suffered as well during that time I invite you to compare AFT over the last decade with (e.g.) FPH or Ebos (both in the same industry, and both nearly quadrupled their SP over the last decade. Tough times? Hmm ...). AFT did not even manage to capitalise on the Covid boost, I guess how inept is this for a medical company selling (well, mainly) painkillers? I heard painkillers have been in demand during Covid - and AFT didn't even manage to capitalise on that.

So - they worked in an industry just splashing in money over the last 5 years or so - and poor inept AFT  missed out. Is this how you recognise investable companies? Did they change anything since this disastrous performance other than slinging anti woke slogans?