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

 

BusinessDesk: SkyCity Lifts Minimum Convention Centre Investment To $430M

SkyCity Entertainment Group, the casino operator, has lifted the minimum it will invest in the Auckland International Convention Centre to $430 million and said total costs including land may be $450 million to $470 million. More>>

Statistics: Drop In Dairy Prices Leads Fall In Exports

Total goods exports fell $240 million (5.5 percent) to $4.2 billion in April 2015 compared with April 2014, Statistics New Zealand said today. More>>

BusinessDesk: APN's NZME Sees Future In Paywalls, Growth In Digital Sales

APN News & Media has touted a single newsroom concept for its NZME unit in New Zealand, similar to what Germany's Die Welt uses, saying an 'integrated sales proposition' is helping it win market share, including ... More>>

Labour Party: Global Milk Prices Now Lowest In 6 Years

The latest fall in the global dairy price has brought it to the lowest level in six years and shows there must be meaningful action in tomorrow’s Budget to diversify the economy, says Labour’s Finance spokesperson Grant Robertson. “Dairy prices ... More>>

BusinessDesk: NZ Inflation Expectations Creep Higher In June Survey

May 19 (BusinessDesk) - New Zealand businesses lifted their expectations for inflation over the next two years, sapping any immediate pressure on the Reserve Bank to cut interest rates, and prompting the kiwi dollar to jump higher. More>>

BusinessDesk: Lower Fuel Costs Drive Down NZ Producer Input, Output Prices

May 19 - Producer input and output prices fell in the first quarter, mainly reflecting lower fuel costs and weakness in prices of meat and dairy products. More>>


Media: Fairfax Media NZ Announces Senior Editorial Team

Fairfax Media New Zealand has today confirmed its new editorial leadership team, as part of a transformation of its newsrooms aimed at enhancing local and national journalism across digital and print. More>>

Science: Flavonoids Reduce Cold And Cough Risk

Flavonoids reduce cold and cough risk Research from the University of Auckland shows eating flavonoids – found in green tea, apples, blueberries, cocoa, red wine and onions – can significantly reduce the risk of catching colds and coughs. The research, ... More>>

BusinessDesk: RBNZ House Alert Speech The Catalyst For Government Action

Prime Minister John Key all but conceded that pressure from the Reserve Bank of New Zealand for concerted action on rampant Auckland house prices was one of the main catalysts for the government's weekend announcements about tightly ... More>>

BusinessDesk: How To Fall Foul Of The New Housing Tax Rules: Tips From IRD

Just because you rented out your investment property doesn't absolve you from paying tax, says the Inland Revenue Department in a summary of commonly made mistakes by non-professional property investors when it comes to their tax liability.More>>

Legal: Superdiversity Law, Policy And Business Stocktake Announced

Mai Chen, Managing Partner at Chen Palmer New Zealand Public and Employment Law Specialists and Adjunct Professor of Law at the University of Auckland, today announced the establishment ... More>>

Housing: More House Price Gains Expected

House price expectations remain high, with a net 56% of respondents expecting house prices will increase. Fears of higher interest rates are fading, consistent with the RBNZ’s signals this year. Affordability and a lack of houses for ... More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news