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Drug-maker AFT's sales rise 9.4pc

NZ Newswire logoNZ Newswire 16/02/2017 Paul McBeth

AFT Pharmaceuticals, which manufactures the Maxigesic painkiller, expects annual sales to meet analysts' forecasts of about $70 million and has adjusted its loan arrangements with a shareholder.

The Auckland-based drug maker projects annual sales will rise 9.4 per cent in the year ending March 31 and has adjusted the revenue covenant on its Capital Royal Group loan to meet a sales target of $67.5m, it said on Friday.

AFT had set up a $US30m ($NZ41m) six-year facility with CRG in 2014, which required a minimum bank balance of $4m and with a 2017 revenue target of $73.5m.

Last November CRG granted AFT the right to lower the revenue targets, which it exercised on Friday for the 2017 year. The 2018 target for sales of $84m is allowed to be reduced to $74.5m and the 2019 target of $96m can be cut to $85m.

AFT hadn't anticipated using the option, saying it would monitor progress through the second half of the financial year and take a conservative approach to exercising it.

The company owed CRG $22m as at September 30.

Separately, AFT said it had been told the US Food and Drug Administration will accept the filing of its new application for Maxigesic tablets.

The company will get a $US2.4m fee waiver because FDA rules allow small entities with fewer than 500 staff to get their first filing for free.

"Our development and regulatory teams have geared up for this important next step in getting Maxigesic into the US market," chief executive Hartley Atkinson said.

"Negotiations on licensing agreements for certain Maxigesic products have started for both the US and Mexico."

The company's shares last traded at $2.70, unchanged over the past 12 months.

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