Aft Pharmaceuticals Foreign Exempt NZX Reports Q1 FY27 Results Toward $300M Target

In its Q1 FY27 quarterly report, AFT Pharmaceuticals (NZX: AFT; ASX: AFP) reported sustained sales growth and confirmed it remains on track to reach its $300 million FY27 revenue target. As New Zealand’s largest domestic pharmaceuticals company according to the TIN100 report, the group underpinned that target with a targeted operating profit of $28 million to $32 million.

The update spanned three themes: continued sales growth, a full product launch pipeline, and R&D advances including its novel injectable iron programme and a newly executed option agreement for a further injectable. AFT now counts eight patented products in its R&D pipeline.

Q1 FY27 highlights at a glance

The quarter’s key takeaways can be summarised as follows:

• On track to reach the $300 million FY27 revenue target, supported by a full product launch pipeline

• Novel iron injectable product has cleared US (FDA IND) and Japan (PMDA) regulatory hurdles

• Option agreement executed with Massey Ventures for a novel injectable targeting a market estimated to exceed US$3 billion by 2032–2034

• Pipeline of eight patented products strengthening long-term value

Dr Hartley Atkinson, Managing Director

“We are pleased with our quarterly sales progress and the advances we have made in our R&D pipeline of, now, eight patented products that together offer the potential of significant long-term value to the business.”

A full pipeline of product launches driving growth

AFT reported a full programme of product launches ahead, spanning both internally developed and in-licensed products. The company noted this pipeline lays the foundations to extend a record of growth that has averaged 17% per year over the past two decades.

AFT Pharmaceuticals FY26 results showed total sales of $254.7M, up 22% year-on-year, with operating profit rising 38% to $24.4M and all three operating segments delivering double-digit growth.

Across its operations in Australia, New Zealand, Singapore, Hong Kong, South Africa, Canada and the United Kingdom, the group has submitted regulatory filings for 86 new products, with a further 138 products in preparation. AFT also awaits data expected to precipitate an additional 145 regulatory filings across its markets over the next couple of years.

Product launches are concentrated in the company’s new business hubs across international and Asian markets, where it expects the highest rates of year-on-year growth. Confidence in its core markets remains strong, with Australia growing 19% and New Zealand growing 11% in FY26.

International efforts are supported by continued investment in market development. AFT recently appointed a senior marketing manager in the UK to assist with growth in Northern Hemisphere markets.

For investors, the depth of this filing programme represents the engine behind future revenue growth and lends credibility to the $300 million target. Each submitted and prepared filing offers a potential future revenue stream, layered on top of contributions from the company’s own R&D pipeline.

Understanding AFT’s dual-engine growth model

AFT operates by both developing and in-licensing products across a range of therapeutic categories, including pain, dermatology, eyecare and injectables. These products are sold across all major pharmaceutical distribution channels: over the counter (OTC), prescription and hospital. This diversification spreads revenue across multiple products, markets and channels rather than relying on any single line.

Beyond its direct markets, AFT out-licenses products to local licensees and distributors in over 125 countries. Why does this matter to investors? The cashflow generated by existing operations supports the development portfolio.

Novel injectable iron clears US and Japan regulatory hurdles

AFT described its novel injectable iron research and development project as one of the most exciting in its R&D portfolio, offering a potential market worth as much as US$7.4 billion. Momentum around the programme has continued to build.

The US Food and Drug Administration (FDA) has reviewed AFT’s Investigational New Drug (IND) application, allowing the company to proceed with its global Phase III confirmatory trial. Separately, Japan’s Pharmaceuticals and Medical Devices Agency (PMDA) has confirmed inclusion of Japan in the R&D programme. The company continues to work with China’s Center for Drug Evaluation (CDE) to include China in the global study, an effort that remains in progress.

FDA clearance for Phase III follows a multi-year regulatory pathway and allows AFT and development partner Hyloris Pharmaceuticals to enrol patients across seven regions, with the trial targeting a market estimated at US$7.41 billion to around 2033.

Key details of the planned trial include:

• 1,366 patients across multiple trial sites

• Sites in Armenia, Europe, India, South Korea, New Zealand, the United States, Japan and potentially China

• Study set to commence September 2026

• Funded by AFT and its development partner, Hyloris Pharmaceuticals

The use of multiple sites and patients from different countries is intended to ensure the data is globally relevant. For investors, the FDA and PMDA clearances help de-risk a multi-billion-dollar opportunity and validate AFT’s global development strategy, with development costs shared alongside Hyloris.

New injectable option agreement targets US$3 billion-plus market

AFT reported the execution of an option agreement with Massey Ventures for a novel injectable product. According to the company’s estimate, the product targets a market expected to exceed US$3 billion by 2032–2034.

Under the terms, upon confirmation of final stability, the option can be exercised and the programme would advance to clinical studies. The company described the product as a high-value opportunity to transform a significant category, provided the development can be advanced.

Alongside this agreement, AFT continues to advance its broader development portfolio spanning pain, dermatology, eyecare and injectables, supported by the cashflows generated by its growing global operations.

Outlook: driving toward and beyond the $300 million target

Dr Atkinson said the outlook for FY27 remained positive despite global uncertainties that have persisted since the beginning of the year. The company reported ongoing growth across its operations and continuing strong demand.

AFT noted it continues to maintain higher inventory levels to help manage uncertainties and ensure certainty of supply to customers. Management reiterated its targets of $300 million in revenue and a targeted operating profit of $28 million to $32 million, alongside continued investment in R&D, in-licensing and market development for longer-term growth.

Dr Hartley Atkinson, Managing Director

“We are seeing ongoing growth across our operations and continuing strong demand. We continue to maintain higher inventory levels which will help to manage the uncertainties and ensure certainty of supply to our customers.

“We are also continuing to put additional projects in place to support our drive towards and beyond our FY27 $300 million revenue target and targeted operating profit of $28 million to $32 million.

“For longer term growth, significant resource and focus continues to be directed towards our R&D pipeline in addition to ongoing new product in-licensing and market development.”

For investors, the positive guidance amid global uncertainty signals management confidence, while the stated operating profit range of $28 million to $32 million provides a concrete profitability anchor against which to measure progress through the remainder of FY27.

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