AFT eyes $300M revenue milestone as R&D pipeline moves to commercialisation
At its FY27 Investor R&D Day held on 28 July 2026, AFT Pharmaceuticals outlined a path toward its $300M revenue target, following FY26 revenue of $254.7M, up 22%. Management framed the update around a dual thesis: a profitable, diversified commercial base that is self-funding a maturing, high-value R&D pipeline.
The presentation was led by Managing Director and CEO Dr Hartley Atkinson, Chief Financial Officer Stuart Houliston, and Chairman David Flacks. Together they positioned AFT as a profitable pharmaceutical company, combining organic commercial growth with optionality from a portfolio of patented pipeline assets targeting multi-billion-dollar markets. All figures are in NZ$ unless otherwise stated.
When big ASX news breaks, our subscribers know first
FY26 delivered record results and a clear line of sight to $300M
AFT reported record FY26 results and issued FY27 guidance that reinforces its stated revenue milestone. Revenue of $254.7M represented growth of 22% and a 17.6% five-year compound annual growth rate (CAGR). The company delivered record operating profit of $24.4M, EBITDA of $28.8M, and net profit after tax (NPAT) of $14.1M.
The dividend was lifted to 2.5 cents per share, up 39%. For FY27, management guided to operating profit of $28M–$32M and reiterated its target of revenue exceeding $300M.
| Metric | FY25 | FY26 | Change | Why it matters |
|---|---|---|---|---|
| Revenue | $208.0M | $254.7M | +22% | Double-digit growth across all territories |
| Operating profit | $17.6M | $24.4M | +39% | Record result funding R&D and expansion |
| EBITDA | $20.9M | $28.8M | +38% | Earnings enabling reinvestment |
| NPAT | $11.4M | $14.1M | +24% | Sustained bottom-line profitability |
| Dividend (cps) | 1.8 | 2.5 | +39% | Returning capital while growing |
Management highlighted that sustained profit growth is self-funding both international expansion and R&D, with no capital raise implied.
Growth engine: established ANZ base plus fast-scaling Asia
The presentation detailed AFT’s geographic diversification as the primary driver toward the $300M target. The established Australian business recorded a 17.2% CAGR over 11 years, reaching $151M in FY26 and representing the majority contribution to group revenue and profit.
Asia, by contrast, is scaling from a smaller base, with a CAGR of 51.6% over 11 years to reach $16M in FY26. AFT noted its medicines are now sold in 87 countries, with distribution agreements spanning more than 100.
The company outlined its global distribution footprint as follows:
-
AFT Direct: Australia, New Zealand, Singapore, Hong Kong, South Africa (70%) and the United Kingdom (70%)
-
AFT USA: distributes targeted products and works with licensees
-
AFT EU: works with Europe-based partners
-
AFT ROW: via licensees and distributors, with extensive work across China, Japan, Korea and the MENA region
The established ANZ business funds growth, while Asia and newer affiliates provide the acceleration toward the revenue milestone.
What AFT’s R&D pipeline is, and why it matters
AFT’s R&D model generates revenue when pipeline products are sold outside AFT’s own territories (ex-AFT). Rather than relying on a single one-off payment, the company explained that these products can generate income through six distinct mechanisms:
-
Upfront payments on signing a licensing deal
-
Milestone payments for events such as regulatory approval or first launch
-
Sales milestones upon reaching agreed sales levels
-
Margin on product supply
-
Profit shares under agreed arrangements
-
Royalties as a percentage of net sales in market
In FY26, AFT recorded licensing income of $3.3M and royalty income of $3.5M, split between Asia ($1.7M) and International ($1.8M). These layered income streams help de-risk the growth story by converting pipeline assets into recurring revenue rather than isolated events.
A pipeline targeting multi-billion-dollar markets
Management presented the R&D pipeline as the key long-term value-creation lever, with staggered launch timelines. The near-term catalyst is Pascomer FA, a treatment for the facial angiofibromas of tuberous sclerosis, which received US FDA tentative approval confirmed on 21 July. Launch awaits the expiry of exclusivity on 22 March 2029. AFT noted the clinical study delivered statistically significant [p<0.05] benefits across the relevant assessment scales.
The highest-value programmes target large addressable markets, quoted in US$:
| Project | AFT Share | Target Filing | Market Size (US$) | Status |
|---|---|---|---|---|
| Iron IV (NCE) | 45% | 4Q 2028 | US$7.4Bn by 2033 | Positive initial Phase III; IND opened with FDA; preparing ~1,366-patient global trial |
| Stability Project | 80% | 4Q27–2Q29 | >US$6Bn | 10+ products; partner Stablepharma |
| Pascomer PWS | 100% | 1Q 2028 | >US$1Bn | No approved treatment; Phase II underway |
| Antibiotic eye drop | 100% (IP in-licensed) | 4Q 2028 | >US$1Bn | Pre-IND filed; IND to be submitted 4Q 2026–1Q 2027 |
| Topical Infantile Haemangiomas | 100% (IP in-licensed) | 4Q28–1Q29 | >US$1Bn | Pre-IND filed; IND to be submitted 1–2Q 2027 |
| Injectable Novel Formulation | 100% (IP in-licensed) | 4Q 2030 | US$3–3.7Bn by 2032–34 | Stability batches under manufacture |
The Iron IV programme, a New Chemical Entity, is advancing under a truly global regulatory plan spanning Armenia, China, Europe, India, Japan, New Zealand and the USA. Management estimated the market at US$7.4Bn by 2033, with AFT holding a 45% share.
The Injectable Iron Phase III programme is being conducted in partnership with Hyloris Pharmaceuticals across seven regions, with the global confirmatory study designed to enrol approximately 1,366 patients and support regulatory filings in markets including the US, China, India, and Japan.
AFT outlined its estimated launch timeline as follows:
-
2027 Q1 – Pascomer Facial Angiofibroma
-
2028 Q4 – Pascomer Port Wine Stain
-
2029 Q2 – Temperature Stable IVs
-
2030 Q2 – Topical Infantile Haemangiomas
-
2031 Q3 – Topical Keloid Scars
-
2032 Q1 – Novel Injectable
The sequenced, self-funded pipeline provides layered, long-dated growth optionality beyond the core commercial business.
Disciplined spend funding a self-sustaining model
The presentation covered the financial discipline underpinning AFT’s growth investment. R&D spend is rising in step with earnings, from $18M in FY26 to a budgeted $23M in FY27 and a forecast $27M in FY28.
Management highlighted that costs as a percentage of revenue fell from 63% in FY17 to 35% in FY26, even as absolute spend increased. Net gearing stood at 26% at FY26, with total equity of $109.1M.
The company pointed to its Maxigesic IV programme as a case study in cost-efficient development. Against investment exceeding $15M, the programme returned $21.1M in licensing income and $5.5M in royalties, plus ongoing sales margins.
AFT has now returned to long term profitability as intended, as the company was prior to IPO and its growth and global reach is now accelerating.
The demonstrated ability to convert R&D investment into multiples of return supports the case for continued pipeline spend.
What comes next for AFT investors
Management closed on the forward roadmap, framing multiple independent growth levers as diversified paths toward its stated targets. Key takeaways included:
-
Expansion through new affiliates across established and emerging markets
-
Ongoing extensive in-licensing, with 283 products in preparation or pipeline
-
Commercialising the current R&D pipeline, with the Sinoject portfolio launching from 2Q 27
-
FY27 targets of revenue exceeding $300M and operating profit of $28M–$32M
Taken together, the established commercial base, the fast-scaling Asian business, and the maturing patented pipeline provide AFT with several distinct routes toward its next revenue milestone.
The Q1 FY27 trading update confirmed the $300M revenue target and $28M-$32M operating profit guidance remain intact, with Japan’s PMDA confirming inclusion in the injectable iron programme and the global Phase III study scheduled to commence September 2026.
Don’t Miss the Next Healthcare Breakthrough on the ASX
Big News Blast delivers breaking ASX healthcare news straight to your inbox within minutes of release, complete with in-depth analysis. Join 20,000+ subscribers already staying ahead of the market at no cost. Click the “Free Alerts” button to start receiving FREE real-time alerts the moment ASX healthcare announcements drop.