AFT Pharmaceuticals posts loss, but confident about summer sales

Drug maker AFT Pharmaceuticals has reported a bottom-line loss of $2.5 million in the first half of the year, following sales disruptions in major Asian markets.

Key numbers for the six months ended September compared with a year ago:

• Net loss after tax $2.45m vs $1.8m net profit
• Revenue $86.7m vs $83.6m
• Operating loss $1.8m vs $3.2m profit
• FY 25 forecast operating profit $15m to $20m

The Auckland-based maker of the Maxigesic pain killer reported record sales in the first half led by growth in Australasia, with operating revenue up 4 percent to $86.7m.

However, sales in Asian markets dropped 18 percent due to several large customers ordering less and a doctors' strike in South Korea, slashing sales for core products.

The company also spent more on research and development, up to $8.9m from $7m.

Managing director Dr Hartley Atkinson said spending more on research was important for a pharmaceutical company.

"We've got what we think is a really good pipeline of eight key products targeting multibillion-dollar markets. So, we are doing a little bit more R&D (research and development), nothing crazy, but we're gradually increasing our R&D spend...

"We want to develop products for patients that don't have treatments, and that's really what we're working hard on, and we think that can have a big advantage and be of big potential going forward."

He said sales had turned around in the Asian markets, making the outlook for the rest of the year more positive.

"Although we have lowered our guidance, which we think is prudent, we've lowered it to $15 to $20 million, we still think we see sales recovering. We've got lots of forward orders for our international business, Asia's trading well, so it's very much back on track."

Atkinson said AFT always traded stronger in the second half due to a boost in allergy medicine sales.

"We're very strong in the New Zealand market in allergy. We're number one in the allergy market, and we do also find our analgesic products do sell a lot more around Christmas time.

"Then also we're very strong in eye care, we're number one lubricating eye drop in the Australian market and obviously summer is the hot and dry time where people get dry eyes, so we have very strong sales around that time of year."

AFT directors continued to expect to declare a dividend for the full year.

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