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

 

AFT Pharmaceuticals expects sales to hit analyst forecast

Friday 17 February 2017 09:15 AM

AFT Pharmaceuticals expects sales to hit analyst forecast of $70 mln

By Paul McBeth

Feb. 17 (BusinessDesk) - AFT Pharmaceuticals, which manufactures the Maxigesic painkiller, expects annual sales to meet analysts' forecasts of about $70 million and has adjusted its loan covenant with shareholder Capital Royalty Group.

The Auckland-based drug maker projects annual sales will rise 9.4 percent in the year ending March 31 and has adjusted the revenue covenant on its CRG loan to meet a sales target of $67.5 million, it said in a statement. AFT had set up a US$30 million six-year facility with CRG in 2014, which required a minimum bank balance of $4 million and with a 2017 revenue target of $73.5 million.

Last November CRG granted AFT the right to lower the revenue targets, which it exercised today for the 2017 year. The 2018 target for sales of $84 million is allowed to be reduced to $74.5 million and the 2019 target of $96 million can be cut to $85 million.

AFT hadn't anticipated using the option, saying it would "monitor progress through the second half of this financial year and take a conservative approach to exercising this option prior to year-end," in its first-half report. The company owed CRG $22 million as at Sept. 30.

Separately, AFT said it had been told the US Food and Drug Administration will accept the filing of its new application for Maxigesic tablets. The company will get a US$2.4 million fee waiver because FDA rules allow small entities with fewer than 500 staff to get their first filing for free.

"Our development and regulatory teams have geared up for this important next step in getting Maxigesic into the US market," chief executive Hartley Atkinson said. "Negotiations on licensing agreements for certain Maxigesic products have started for both the US and Mexico."

AFT also finalised its termination and settlement for its supply of Metoprolol, a beta-blocker to treat heart problems and high blood pressure, to New Zealand's Pharmac drug funding agency. The drug maker will pay $900,000 to Pharmac in the 2018 financial year. AFT won the Metoprolol contract as the sole supplier in 2015, however, a shortage of the drug led to supply issues and Pharmac has since put the contract back out to tender.

The company's shares last traded at $2.70, unchanged over the past 12 months.

(BusinessDesk)

ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Skodafone Goneski: Sky TV, Vodafone Drop $3.44 Billion Merger Plan

Sky Network Television and Vodafone New Zealand have terminated their merger agreement which aimed to create the country's largest telecommunications and media group, and have withdrawn an appeal against the Commerce Commission's rejection of the plan. More>>

Quake Insurance: Reforms To EQC Act Announced

· Increasing the monetary cap from $100,000 (plus GST) to $150,000 (plus GST) for EQC building cover.
· Clarifying EQC land cover is for natural disaster damage that directly affects the insured residence or access to it... More>>

ALSO:

Reserve Bank: Official Cash Rate Unchanged At 1.75 Percent

Global economic growth has increased and become more broad-based. However, major challenges remain with on-going surplus capacity and extensive political uncertainty... More>>

Kaikōura Earthquake: Private Insurers Receive $1.8b Claims

Insurance Council Chief Executive Tim Grafton said most is for commercial loss at $1.36 billion, with residential claims amounting to over $460 million. “...We have a high level of confidence that most people will have received settlement offers by the end of this year." More>>

ALSO:

Forms And Data: New Proposals To Simplify Personal Income Tax

The Government is proposing to make tax simpler for individuals, with people whose only income is from a salary, wages or investments no longer being required to file tax returns to receive tax refunds or to calculate any additional tax. More>>