AFT Pharmaceuticals Limited (ASX: AFP; NZX: AFT) has reported strong strategic and operational progress in its December quarter FY26 investor update, highlighting international expansion, product development and research partnerships that support its medium-term growth outlook.
AFT Pharmaceuticals is expanding its global footprint through new R&D partnerships and international market growth in FY26.
The New Zealand-based pharmaceutical company announced key milestones across South Africa, Europe, Canada and the United Kingdom, alongside a major injectable technology collaboration that could unlock more than US$6 billion in global market opportunities.
Management reaffirmed its FY26 earnings guidance and stated that the company remains on track to achieve its FY27 revenue target of $300 million, supported by growing cash flows and newly secured banking facilities.
Key Findings and Strategic Highlights
During the three months ended 31 December 2025, AFT continued to execute on its long-term strategy to build a diversified, international pharmaceutical business across hospital, prescription and OTC markets.
Key developments during the quarter included:
- Acquisition of the hospital division of Cape Town-based Pharma Dynamics, expanding AFT’s presence in the South African hospital sector
- Entry into a strategic R&D partnership with UK-based Stablepharma to develop room-temperature injectable pharmaceuticals
- Expansion of AFT’s Canadian OTC and hospital product portfolio, including the upcoming launch of Combogesic tablets
- Establishment of a new debt facility with BNZ to support international growth
South Africa and European Business Growth
AFT’s acquisition of Pharma Dynamics’ hospital division became effective from 1 December 2025 and includes licences and existing sales contracts for 13 products sold in South Africa, along with additional licences covering Namibia, Zambia and Mozambique.
During the transition phase, sales will continue to be processed by Pharma Dynamics, with gross profit recognised by AFT Pharmaceuticals South Africa. Full integration is expected by March 2026.
AFT’s acquisition of Pharma Dynamics’ hospital division strengthens its position in South Africa and the surrounding African markets. (Source: ifc.org)
In Europe, AFT has progressed the commercialisation of a portfolio acquired in FY25 from an insolvent German company. Regulatory updates have cleared the way for product launches in Austria, Germany, Ireland and Italy by the end of FY26, with further expansion into Portugal and Nordic markets planned for FY27.
Injectable Technology Partnership Opens US$6 Billion Market
AFT has entered into a research and development agreement with UK biotech Stablepharma to develop ambient-temperature injectable formulations using StablevaX™ technology. The platform allows medicines to remain stable at temperatures above 40°C, removing the need for refrigeration throughout supply chains.
The pharmaceutical products covered by the agreement represent more than US$6 billion in global annual sales. The first two development programs, expected to commence before the end of FY26, could generate up to US$500 million in global revenue. Around 17 per cent of the addressable market sits within AFT’s existing business hubs.
Managing Director Dr Hartley Atkinson said the technology could reduce waste, logistics costs and carbon emissions, while improving supply reliability.
Pipeline Expansion in Canada and the UK
Following the successful launch of Combogesic IV in Canada in the first half of FY26, AFT plans to introduce Combogesic tablets to the Canadian OTC market in the first quarter of FY27.
The tablets provide clinicians and patients with a non-opioid alternative for pain management during post-operative and discharge care. AFT will support the launch through a combined hospital sales force and a 40-person retail pharmacy team. Six additional OTC products are also scheduled for launch in Canada in FY27, while eight are planned for the UK.
Financial Position and Market Standing
AFT continues to fund its expansion through operating cashflows and a new banking facility secured with BNZ in December 2025. The company has reaffirmed FY26 operating earnings guidance of $20 million to $24 million and remains focused on reaching its FY27 revenue target of $300 million.
AFT Pharmaceuticals (ASX: AFP) continues to attract investor attention as it scales its international pharmaceutical portfolio. (Source: ASX)
At the latest market update, AFT Pharmaceuticals Limited was trading at $2.970 per share, with no change on the day. The stock was quoted within a bid–offer range of $2.970 to $3.200, with a market capitalisation of $311.45 million, reflecting its growing international footprint and expanding product pipeline.
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Outlook
With hospital acquisitions in Africa, new European product launches, a high-value injectable technology platform and a growing OTC presence in Canada and the UK, AFT Pharmaceuticals is positioning itself as a scalable international pharmaceutical group with multiple growth levers heading into FY27.
