AFT set to pay dividend

AFT Pharmaceuticals has reported a strong increase in profit for the year to 31 Mar, with an overall result increasing to NZ$19.8 million for the 12-month period.

The company cited strong growth across all regions and new products, as well as increased royalties and licensing income.

Revenue was up 15.2% to NZ$130.3 million, with Australia and NZ delivering increases despite the impact of COVID-19 slowing sales growth, particularly in the third quarter of the financial year.

Licensing income surged following the licensing of Maxigesic IV in the USA, with AFT MD Hartley Atkinson saying “in line with our expectations, we have benefited from a traditionally stronger second half of the year as COVID-19 became endemic around the world, and we benefited from previously delayed and new product launches in the second half of the year”.

The company noted that the tablet form of Maxigesic is now sold in 46 countries, including most major European markets, while AFT is hopeful of regulatory approval for Maxigesic tablets in the USA later this year.

The AFT R&D pipeline continued to expand with key projects including new variants of the Maxigesic family of medicines, AFT’s NasoSURF patented nasal drug nebuliser, as well as other activities in dermatology, a topical analgesic and gastro-intestinal health.

A new dividend policy, reflecting the confidence of the company’s Board in AFT’s ability to build on its decades-long record of uninterrupted sales growth, will see the business pay a dividend of 2030% of normalised net profit after tax on an ongoing basis.

A maiden dividend to shareholders is expected to be declared for the 2023 financial year with Chair David Flacks saying the move is a “strong statement of confidence in AFT’s future”.