AFT sees upside from Australian plans to restrict codeine sales
Opportunity for more sales of AFT's maxigesic
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Hawke’s Bay
New Zealand's AFT Pharmaceuticals expects to benefit from news that all medicines containing codeine will be prescription-only in Australia from February 1, 2018.
Australia's medicine's watchdog, the Therapeutic Goods Administration or TGA, today confirmed products containing codeine will not be able to be sold over the counter in pharmacies.
Auckland-based AFT managing director Hartley Atkinson said his company will "undoubtedly" experience a sales increase across the Tasman as a result of the decision.
According to the TGA, it took into consideration compelling evidence of the harm caused by overuse and abuse of over-the-counter codeine containing medicines, as well as the fact that the US, most of Europe, Hong Kong, Japan, the United Arab Emirates and several other countries have already stopped codeine-containing products from being sold without prescription.
AFT launched a codeine-free product called Maxigesic in 2014 in Australia. It had expected tablet sales to double in the current financial year after the TGA reduced sales restrictions on smaller Maxigesic packs, paving the way for it to be displayed on ordinary shelves rather than behind the counter. Today's decision, however, means it will upgrade its growth estimates for the 2018 financial year, Mr Atkinson said.
"The lead time until February 1, 2018, gives plenty of time for patients to look to switch to over-the-counter analgesics like Maxigesic," he said.
The company, which develops, licenses, and sells pharmaceutical products in Australasia and around the world, began trading in on the New Zealand and Australian stock exchanges in December last year and signalled Australia would be a key market.
The stock was unchanged at $2.75, having fallen 13% so far this year.
(BusinessDesk)
Rebecca Howard
Tue, 20 Dec 2016
Tue, 20 Dec 2016
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AFT sees upside from Australian plans to restrict codeine sales
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