With biotech stocks broadly having a strong run in 2025, and with more of the year ahead, investors are still looking for stocks in the sector with room to run. Recent moves from the Donald Trump administration to cut US drug prices should be considered, and indeed, the ASX has already factored that in.
So what about countries more exposed to Australia, ready to play the part of a geopolitical defensive?
There, investors will be likely looking for a company perhaps already boasting a household name over-the-counter (OTC) medicine on its books, and maybe even an expansive product catalogue including Australia’s leading lubricating eyedrop.
Other strong value propositions would be for the stock to have a history of consistent revenue growth, a disinclination towards capital raises – and – even an overlooked $15M R&D pipeline. Plus: eight other drugs in development, as well as up to eighty licences in other countries.
If that’s enough to get your attention, it’s time to look at AFT Pharmaceuticals (ASX:AFP).
Here’s a company that, despite its small status, could easily be considered a ‘mini-Pfizer.’
And it has the potential to grow as large as the real deal.
Take a look at founder credentials
Founded in 1997 by Hartley Atkinson – if the rumours are to be believed, from his very own garage alongside his wife – AFT Pharma has had a long-running presence both in Australia, and, on the ASX.
Atkinson boasts a Doctorate in pharmacology and a Masters in Pharmaceutical Chemistry; credentials he picked up at the University of Otago, New Zealand.
Formerly a pharmaceutical researcher at Christchurch Hospital, and, all-rounder executive at Swiss pharmaceutical giant Roche, Atkinson clearly brings pedigree to his duties as founding chief of AFT Pharma.
For those playing from home, your kitchen medicine drawer might be closer tied to AFT Pharmaceuticals than you may think. The company owns Maxigesic, the paracetamol-ibuprofen combination available OTC at pharmacies Australia-wide.
Breaking away from opioids early
And Maxigesic, in a way, taps into the original vision underpinning the company. That vision, principally, was to develop an opioid-free pain relief alternative for the Australian, and global, markets.
Looking at Purdue pharma’s legal troubles, Atkinson’s cautious approach to addictive substances was nothing but prescient. But the man himself is humble on that front.
“[We] really wanted to introduce, and produce, drugs that help people and improve their health,” Hartley summarised to HotCopper.
“We were always very concerned about opioids. We thought they were a problem potentially, and one of our key projects has been the introduction and development of [an] analgesic that avoids the requirements for opioids.”
For those playing at home, that’s Maxigesic: a combination of paracetamol and ibuprofen, drugs far safer than opioids when it comes to overdose risk; addiction risk and overall more beneficial for health.
But it’s not just Maxigesic
First and foremost worth noting is that AFT Pharma has licences in up to 80 countries. That alone speaks for itself, and even with some uncertainty in the space coming out of the US at this time, the company remains exposed to Australia, New Zealand, China, Asia ex-China, Europe, and of course, the United States.
Atkinson is also of the view the market broadly has failed to recognise AFT Pharma as a research and development company, with a $15M R&D pipeline at any given time.
“We’re a lot smaller [than Pfizer] obviously,” Atkinson was quick to concede to HotCopper.
“The key thing, though, is that we do fund our R&D – we have extensive R&D with eight major projects in drug development funded out of profits.
“We’ve got a number of new operations around the globe and we’re investing money into those as well.”
That the company is big on research is, perhaps, evidenced by its patent base, and extensive product catalogue.
On top of a leading painkiller brand and eyedrops, AFT is also behind:
- Crystaderm First Aid Cream
- Diarrelieve sachets
- AFT’s Ferro range of iron medicines
- Liposachet liposomal vitamins
- Optisoothe Eye Masks and eyelid wipes
If you were wondering why the company bills itself as a ‘mini-Pfizer,’ that should be becoming clear.
Taking a look at fundamentals
But the prestige of its foundational member isn’t what AFT Pharmaceuticals needs to rely on. In fact, unlike some other biotech stocks, it can point to its fundamentals as testament to value proposition.
Consistent revenue growth and a profitable position are enviable for many biotech and pharmaceutical stocks (or health care if you prefer), and with a twelve monthly coming out on May 22nd, investors will be watching on.
Perhaps first and foremost worthy to note for biotech investors potentially interested in AFT, is that the company isn’t particularly fond of dilutive capital raises.
“We’re pretty careful the way we allocate capital … and we don’t raise capital either,” Atkinson said.
“We’re able to fund [operations] out of profits. Some of it’s assigned towards R&D, we spend about $15 million a year on R&D and we’re also spending money on our expansions as well.
“We’re starting up in Canada, we’ve been going in the UK for a few years, we bought a company in South Africa … we purchased [a] company in Europe about a year ago, and we’re able to do this, once again, all out of existing cash flows.”
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Disclaimer: HotCopper had a commercial relationship with AFT Pharmaceuticals at the time this article was created and published.