Pharmacologist Dr Hartley Atkinson’s company is forecasting it will hit profitability this financial year after years of investment on research and development.
In May the NZX and ASX-listed company announced it had achieved an operating profit of $6.1 million for the year ending March 31 2019, up from a $10.1m loss the previous year. But financing costs of $8.4m kept it in the red, posting an after-tax loss of $2.4m.
AFT is best known for its pain relief drug, Maxigesic, which combines paracetamol and ibuprofen and is registered in 42 countries.
The company uses a licensing model to sell its pharmaceutical products in 125 countries and it also sells other companies’ products in New Zealand and Australia.
AFT has experienced sales growth, put tighter control on its operating costs and reduced research and development expenditure following the successful completion of clinical trials on Maxigesic.
In July it signed a deal for the trial of a drug that could be potentially its most successful yet. The out-licensing and development deal with US dermatology developer Timber Partner was for Pascomer, an undeveloped cream to treat facial disease. AFT has also signalled an interest in medicinal cannabis.
AFT was started in Atkinson’s in garage in 1997 with just $50,000 after he had worked for Swiss drug company Roche. AFT now has about 80 staff in New Zealand, Australia, Singapore and Kuala Lumpur, and Australia remains its biggest market with sales reaching $50m.
Atkinson, who completed a doctorate in pharmacology while working at Christchurch Hospital, owns 72.5% of the company. The second largest shareholder is US-based healthcare investment firm Capital Royalty Partners.
Atkinson’s wife, Marree, sits on the board and is head of staff. The couple have four children.
Outside of work he’s involved in sports such as skiing and sailing and represented New Zealand in Europe Dinghy yachts.
Atkinson is a lifetime patron of the Anaesthesia and Pain Medicine Foundation in Australasia, which conducts research to improve outcomes for people in pain. And he has been a large donor to his former high school, Westlake Boys, giving money towards a new gymnasium and classroom facilities.
2018: $180 million