Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


AFT Pharmaceuticals mulls listing on NZX

AFT Pharmaceuticals mulls NZX listing as Milford, US investor take 10%stake

By Pattrick Smellie

May 19 (BusinessDesk) – Privately held drugs developer and reseller AFT Pharmaceuticals is contemplating a listing on the NZX, having attracted a 10.6 percent equity investment from a US specialist healthcare investment fund and Auckland-based Milford Asset Management.

Companies Office records show Capital Royalty, with headquarters in Houston, Texas, has taken a 7.58 percent stake in Auckland-based AFT, leaving a 3.03 percent stake taken by Milford’s Active Growth Fund, for an all-up initial equity injection of US$14 million.

Capital Royalty is also offering up to US$30 million in a six year structured loan facility, which is the fund’s normal method of investment. Its decision to inject equity was a departure from the norm and an indication of the potential it sees for the New Zealand company to ramp sales into the Australian and Asian markets, Milford’s Brook Bone told BusinessDesk.

Today’s statement gave no indication of possible timing for an NZX float for AFT, which has grown from a business established in 1997 in the garage of its founder and until now 100 percent shareholder, Hartley Atkinson, to turnover of $66 million in the last financial year.

AFT is targeting sales of $80 million this year. While perhaps its best-known product in New Zealand is the heavily promoted pain-killer Maxigesic, which combines paracetamol and ibuprofen in what the company says is a world-first medicine, it markets nearly 300 medicines to pharmacies and New Zealand hospitals.

It is launching products into Australia and licencing arrangements with some 40 countries for a range of pharmaceuticals that AFT has either developed from scratch, is producing because the drug in question is off-patent, or is marketing on behalf of other manufacturers.

“We see the Capital Royalty investment as a strong vote of support from a USA-based investment expert in the health services field,” said Atkinson, in a statement. “The involvement of Milford Asset management is also a very important kiwi link which will assist AFT in its eventual plans to IPO locally.”

AFT will use the proceeds of the capital-raising for “the next stages of sales and pipeline growth” and to increase research and development spending.

“When you get into the business and look at the successful products they have developed and commercialised, and see the portfolio they are currently developing and commercialising, there’s a large potential for the business,” said Milford’s Bone.

The company showed strong ability to gain regulatory approvals for its products in multiple jurisdictions, based on the skills of “somebody who really understands the market and isn’t tied up with a large, bureaucratic business unit,” Bone said.

“They are showing the benefits of being small and nimble. They’ve got good people they can put in and get things done.”

Milford found it attractive that AFT had a large portfolio of products, rather than relying on a “blockbuster”, in a firm that had “all the hallmarks of being a successful listed company.”

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: RBNZ Starts Talks On Tougher Rules For Property Speculators

The Reserve Bank of New Zealand is stepping up preparations to restrict lending to residential property investors as it watches house prices, particularly in Auckland, continue to rise strongly. More>>

ALSO:

Research: ‘Ageing Well’ Science Challenge Launched

Science and Innovation Minister Steven Joyce today launched the Ageing Well National Science Challenge, confirming initial funding of $14.6 million. More>>

ALSO:

Scoop Business: Govt Resisting Pressure To Pump More Cash Into Solid Energy

Prime Minister John Key says it is “not the government’s preferred option” to make a fresh capital injection into the troubled state-owned coal miner, Solid Energy, but dodged journalists’ questions at his weekly press conference on whether that might prove necessary... More>>

ALSO:

Lagest Ever Privacy Breach Award: NZCU Baywide Accepts “Severe” Censure In Cake Case

NZCU Baywide says that once it was found to have committed a breach of a former staff member’s privacy, it had attempted to resolve the matter... the censure and remedies for its actions taken almost three years ago are “severe” but accepted, and will hopefully draw a line under the matter. More>>

ALSO:

Scoop Business: PayPal Stops Processing Mega Payments; NZX Listing Still On

PayPal has ceased processing payments for Mega, the file storage and encryption firm looking to join the New Zealand stock market via a reverse listing of TRS Investments, amid claims it is not a legitimate cloud storage service. More>>

ALSO:

Housing Policy: Auckland Densification As Popular As Ebola, English Says

Finance Minister Bill English said calls by the Reserve Bank Governor for more densification in Auckland’s housing were “about as popular in parts of Auckland as Ebola” would be. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news