Edison Issues Initiation on AFT Pharmaceuticals

Jun 01, 2016, 05:36 ET from Edison Investment Research

LONDON, June 1, 2016 /PRNewswire/ --

AFT Pharmaceuticals is a New Zealand-based specialty pharmaceutical company that currently sells 130 prescription specialty generics and OTC products through its own salesforce in New Zealand, Australia and South-East Asia and has been expanding its geographic footprint. AFT now has agreements in 109 countries to distribute Maxigesic, its combination paracetamol (acetaminophen)/ibuprofen product. We value AFT at NZ$458m or NZ$4.73 per basic share.

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We value AFT at NZ$4.73 a share, based on a DCF model with a WACC of 10%. AFT reported NZ$28m in cash and NZ$23m in debt on the balance sheet for FY16, after cash burn of approximately NZ$15m. We expect the company to return to profitability in 2018 and achieve a 25% CAGR of revenues through FY20, which is up from its historical 19% CAGR.

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For more information please contact:
Maxim Jacobs
Edison Investment Research

Dennis Hulme
Edison Investment Research
+61-(0)2-9258-1161 healthcare@edisongroup.com

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SOURCE Edison Investment Research