Edison Issues Initiation on AFT Pharmaceuticals

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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All reports published by Edison are available to download free of charge from its website http://www.edisoninvestmentresearch.com.

About Edison: Edison is an international equity research firm with a team of over 110 analysts, investment and roadshow professionals and works with both large and smaller capitalised companies, blue chip institutional investors, wealth managers, private equity and corporate finance houses to support their capital markets activity. Edison provides services to more than 420 retained corporate and investor clients from offices in London, New York, Frankfurt, Sydney and Wellington. Edison is authorised and regulated by the Financial Conduct Authority.

Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities.

For more information please contact:
Maxim Jacobs
Edison Investment Research
+1-646-653-7027

Dennis Hulme
Edison Investment Research
+61-(0)2-9258-1161 [email protected]

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SOURCE Edison Investment Research

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