Health Check: Aft’s revenue and drug-development ambitions are running to plan  

• NZ drug maker’s expansion plans are no Aft-erthought
• Cann Group returns to profits – in August at least
• Veteran Sonic Healthcare chief calls it a day

Kiwi drug maker and distributor AFT Pharmaceuticals (ASX:AFP) is on track to achieve its ‘aspirational’ targeted NZ$300 million ($207m) of revenue in the 2026-27 year.

This compares with NZ$208 million in the year to March 2025.

In an early-bird September (second) quarter update, Aft “has  benefited from growth across all regions” and progressed its research and development and in-licensing and out-licensing efforts.

The news sent Aft shares around 10% higher.

“We are closing out the first half of the 2026 financial year pleased with the progress we have made,” Aft CEO Dr Hartley Atkinson says.

AFT’s products cover everything from pain, eyecare, dermatology, gut disorders, medicated vitamins and hospital injectables.

The company’s best sellers are Maxigesic – a paracetamol and ibuprofen combination – and Hylo eye drops.

Aft plans to launch several new products in coming months.

In the UK, the company has extended distribution of Maxigesic tablets from the two big chemist chains to the independents.

The company also will launch an intravenous (I.V) form of Maxigesic in several London hospitals.

Aft has launched Combogesic I.V. in  Canada, with a pipeline of 20 additional medicines.

In South Africa, Aft has won approval for the first of four products and has a pipeline of 30 planed therapies.

In the US, Aft is advancing approval applications for a topical strawberry birthmark cream, as well as antibiotic eyedrops.

Aft’s in-licensing efforts include a tranexamic acid mouthwash. That’a a medicine to help reduce or prevent excessive bleeding.

Iron will to get this one to market

Aft’s R&D centrepiece is a trial program for an intravenously delivered iron medication.

The company recently completed a 146-patient phase III trial, comparing the candidate to an oral therapy.

The initial data suggests the medicine has fewer side effects and lower toxicity and is easier to administer.

“While current intravenous iron therapies are effective, they often present tolerability issues, the risk of side effects, and typically require multiple infusions,” Atkinson says.

“Our new medicine offers the potential to overcome some of these challenges.”

The company is preparing an Investigational New Drug Application to the US Food and Drug Administration, which would forge the way for a multi-centre, 1000 patient trial.

The company cites an addressable market of US$7.41 billion.

Aft consistently has snuck under Big Pharma’s radar by finding niche – but lucrative – markets.

“There are $750 million to $1 billion markets where patients really need treatments,” Atkinson told Stockhead in March.

“The pharma market is big enough for everyone.”

Improved earnings? Cann do

Improved sales of the green stuff have put struggling medicinal pot producer Cann Global (ASX:CGB) in the black.

The company today reported an unquantified underlying profit in August, the first monthly surplus since the company opened its Mildura facility in 2022.

In the year to June 30 Cann produced full-year revenue of $13.3 million, down 31%. The company  narrowed a previous $9 million underlying loss to $5.1 million.

Cann cites strong bulk flower sales, underpinned by the Botanitech product  range and growing demand for new cultivars.

“Recent additions to our portfolio are aligned with customer preferences around colour, aroma, terpene profile and THC potency.”

The company has also reduced operating costs at a faster-than-budgeted rate.

“Export momentum is building, with advanced negotiations underway with distributors in Germany, Poland, the UK and Malta,” the company says.

“Export pricing remains favourable versus domestic alternatives, supporting  improved margins.”

On September 10 Cann said its lender, the National Australia Bank had agreed to waive waived just over $1,378 million in fees. These were due in August.

Cann has a fully drawn $15.6 million loan with the NAB, as well as a $49.4 million construction facility pertaining to the state-of-the art Mildura digs.

The company says it is “engaging constructively” with the NAB and other financiers and promises an update “in the coming weeks”.

Under departing veteran CEO, Sonic boomed

Sonic Healthcare (ASX:SHL) CEO Dr Colin Goldschmidt will retire after a marathon 32-year stint.

Fair enough!

Over that time, the pathology (and radiology imaging) group has grown from having a single lab in Sydney, to a $10 billion market cap entity. Sonic also operates in multiple countries including the US, the UK and Germany.

In fact, it’s now the world’s third-biggest pathology provider.

As of the November 20 AGM, Goldschmidt will be replaced by Dr Jim Newcombe.

A clinical microbiologist, Newcombe currently heads Sonic’s founding practice, Sydney’s Douglass Hanly Moir Pathology.

Post AGM, Goldschmidt will be an unpaid advisor to the company and will continue to chair the Sonic Healthcare Foundation.

Sonics shares were steady this morning, so the market’s message is: beauty Newk and business as usual.