CBD, AFT & BLT: A glance at 3 attractive NZX pharma stocks

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CBD, AFT & BLT: A glance at 3 attractive NZX pharma stocks

 CBD, AFT & BLT: A glance at 3 attractive NZX pharma stocks
Image source: Josep Suria, Shutterstock.com

Highlights

  • New Zealand’s pharma industry is the best in Oceania.
  • It is approximately a USD$1.2-billion industry.
  • Cannabis for medicinal purposes is a very strong industry.

The pharma industry in New Zealand is well developed and attracts FDI. The industry is pegged at approximately USD1.2-billion. It has a significant medicinal cannabis sector, which is developing faster than the rest.

Let’s look at 3 attractive pharma stocks on the NZX.

Cannasouth Limited (NZX:CBD)

Cannasouth is a major medicinal cannabis company. It reported its preliminary results for the full year on 1 March.  The Company performed well despite COVID-19 pandemic-related restrictions. Its achievements listed out in the results were the grant of a license by MCA to supply certain products. It released a report on medicinal cannabis to assist its investors in making informed decisions. More importantly, the Company raised NZ$4.7 million by way of share price and public offer. However, it reported a loss of NZ$1.6 million and a revenue of NZ$1.3 million. Its net assets were up to NZ$15.7 million.

CBD recorded a loss of NZ$1.6 million and a revenue of NZ$1.3 million. Net assets grew to NZ$15.7 million.
Also Read: RUA & CBD: Are these NZX-listed medicinal cannabis stocks flying high?

On 6 April, it was trading down by 2.78% at 0.350, at the time of writing.

Source: © 2022 Kalkine Media®

AFT Pharmaceuticals Limited (NZX:AFT, ASX: AFP)

AFT manufactures pharmaceutical products. It announced on the NZX today that the US Food and Drug Administration (FDA) had given the nod to topical treatment indicated for facial angiofibroma.

While this treatment has been developed by a Japanese firm Noblepharma, its active ingredient rapamycin is also being developed by AFT and its partner treatment in the US is called Timber Pharmaceuticals. The brand name for the treatment is Pascomer. Further, AFT notes that it has been granted a significant patent in Australia till 2040.

AFT claims that its formulation can remain at room temperature for 36 months, whereas Noblepharma product is stable if kept in refrigerated conditions.  

Recently, the Company also spelt out its priorities in terms of planned growth in its Australasia portfolio.
Also Read: Why to look at 4 NZX-listed pharma stocks in 2022?

Related Article: AFT Pharmaceuticals (NZX:AFT): The Company’s revenue rises in interim results

On 6 April, the stock was trading up by 1.39% at NZ$3.640, at the time of writing.

Bliss Technologies Limited (NZX:BLT)

BLT is a company specialising in probiotic strains. The company faced some short-term challenges due to the COVID-19 pandemic in Q3. Its ingredient revenues were down in the US market. However, its other products saw growth. One silver lining for the company was its strategic partnership with Probi AB to grow future revenues and research and development (R&D) efforts.

On 6 April, the stock was trading up by 2.44% at NZ$0.042, at the time of writing.

Related article: What is a Penny stock? Can it prove to be a good bet for investors?

Bottom Line: The pharma sector is big in NZ. It is set to grow further with new acquisitions. Medicinal cannabis is one such growth area for pharma companies.

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