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

 

Half Empty: Fonterra's 2017 Opening Forecast Below Expectations

Fonterra Cooperative Group raised its forecast farmgate milk payout for next season by less than expected as the world's largest dairy exporter predicts lower prices will crimp production and supply will pick up. The New Zealand dollar fell. More>>

ALSO:

Pest Control: Mouse Blitz Team Leaves For Antipodes

The Million Dollar Mouse project to rid Antipodes Island of mice is underway with the departure of a rodent eradication team to the remote nature reserve and World Heritage Area. More>>

Gongs Got: Canon Media Awards & NZ Radio Awards Happen

Radio NZ: RNZ website The Wireless, which is co-funded by NZ On Air, was named best website, while Toby Manhire and Toby Morris won the best opinion general writing section for their weekly column on rnz.co.nz and Tess McClure won the best junior feature writer section. More>>

ALSO:

Pre-Budget: Debt Focus Risks Losing Opportunity To Stoke Economy

The Treasury is likely to upgrade its forecasts for economic growth in Budget 2016 next week but Finance Minister Bill English has already signalled that more of his focus is on debt repayment than on fiscal stimulus or tax cuts... More>>

ALSO:

Fulton Hogan's Heroes: Managing Director Nick Miller Resigns

Fulton Hogan managing director Nick Miller will leave the privately owned construction company after seven years in charge. The Dunedin-based company has kicked off a search for a replacement, and Miller will stay on at the helm until March next year, or until a successor has been appointed and a transition period completed. More>>

ALSO:

Gordon Campbell: On Electricity, Executions, And Bob Dylan

The Electricity Authority has unveiled the final version of its pricing plan for electricity transmission. This will change the way transmission prices (which comprise about 10% of the average power bill) are computed, and will add hundreds of dollars a year to power bills for many ordinary consumers. More>>

ALSO:

Half Empty: Fonterra NZ, Australia Milk Collection Drops In Season

Fonterra Cooperative Group says milk collection is down in New Zealand and Australia, its two largest markets, in the first 11 months of the season during a period of weak dairy prices. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news