- AFT Announced today that it had licensed Its product Maxigesic IV in the US.
- The negotiations took some time, but it is a milestone for the Company.
- Post news, the stock surged 17.25% after opening.
AFT Pharmaceuticals Limited (NZX.AFT, ASX.AFP) on Wednesday announced that it had signed an agreement with Hikma Pharmaceuticals USA for the commercialisation of its Maxigesic IV in the U.S. This is a significant milestone for the Company as it is the first licence for the Maxigesci family of medicines in the US market.
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Under the agreement, Hikima will have sole rights for the distribution and sale of the drug in the US. In return, AFT will be entitle for a payment of US$18.8M as upfront fees and a profit share from the sales. The Managing Director of AFT, Dr Hartley Atkinson, said that the Company was very excited about entering into the US market with Hikma, which has a strong presence in the US for medical products and services.
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Hikma is a pharma company, which operates globally and deals with generics across a range, including respiratory, oncology, and pain management. It is the world’s third-largest US supplier of injectable medicines with a portfolio of 100 products.
Dr Atkinson said that the agreement had to be announced in March 2021, but got delayed due to hinderances in negotiations.
This delay will force the Company to lower its guidance for FY21, which had been pegged at an operating profit of NZ$14M to NZ$18M.
Maxigesic IV is a fluid, which offers healthcare providers with a strong alternative for post-operative pain management. Its biggest advantage is that it avoids the side effects of the opioid-based analgesics, which are so far used in post-operative care.
AFT has been signing several agreements for its Maxigesic IV with several other countries across the globe, including Everpharm for Germany, Austria, and France, Aquettant for the Nordic countries, Jed Pharma for Ireland, and Edge for the United Kingdom. Besides, it has done well for its other drugs and products as well.
Meanwhile, it is working to get FDA approvals for the tablet form of Maxigesic. Meanwhile, AFT is working to complete the US FDA approval for the tablet form of the medication. FDA is in the process of conducting a Good Manufacturing Practice inspection for the drug. Process has been delayed due to COVID-19 disruptions.