Why the AFP Pharmaceuticals (ASX:AFP) share price is marching higher

The AFP Pharmaceuticals Ltd (ASX: AFP) share price is up 3.2% today after announcing a raft of agreements and a new establishment in Europe.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The AFP Pharmaceuticals Ltd (ASX: AFP) share price is on the march today. This comes after the company announced a raft of agreements and the establishment of a new subsidiary in Europe. The AFP Pharmaceuticals share price is up at an intra-day high of 3.2% to $5.14. This compares to the S&P/ASX 200 Index (ASX: XJO) which is fractionally higher at 0.4% to 6,521 points.

What's driving the AFP Pharmaceuticals share price?

AFT Pharmaceuticals share price is rising today after the company advised it has opened a representative office in Ireland to strengthen its growth profile across Europe. Management said the decision was based on the ongoing demand in the region for its Maxigesic pain relief products.

The company has appointed the managing director of Ireland's JED Pharma, Eddie Townslie, as local director of AFT Pharmaceuticals in Europe. JED Pharma is a distributor of Maxigesic IV in Ireland. Prior to his current role, Mr Townslie held the position of export director at pharmaceutical group Pinewood Healthcare.

International growth

Furthermore, the company said Maxigesic IV had been submitted for registration to 27 European countries, with 17 so far approved. AFT Pharmaceuticals noted that as registrations increased, so too would the need for the company to provide local support. This will involve further offices to oversee licensees and distributors such as regulatory services.

The company said it received new licensing, distribution and supply agreements for Maxigesic. The new partner signing is for its Maxigesic IV products in Ireland and Thailand, and Maxigesic tablets in Greece, Pakistan, and Ecuador.

According to a report published by DelveInsight, AFT Pharmaceuticals has a huge market opportunity ahead. Market estimates indicate that Maxigesic has the potential to generate sales of more than $80 million in Europe by 2028.

What did management say?

AFT Pharmaceuticals managing director Dr Hartley Atkinson welcomed the progress, saying:

We are also delighted to have secured agreements for Maxigesic IV distribution with Ireland's Jed Pharmaceuticals for Ireland, along with Alliance Pharma in Thailand. We have concluded licensing agreements with Switzerland's Acino for Maxigesic oral dose forms in Ecuador and Greek's market leading Elpen Pharmaceuticals, along with distribution agreements with the Karachi-based Excel Healthcare Laboratories for Pakistan.

Acino distributes Maxigesic tablets in a broad range of countries including the Central American Common Market (CACM), while the relationship with Excel Healthcare Laboratories and Elpen is new.

We are delighted to continue to expand our partners for Maxigesic and Maxigesic IV around the world with the focus now moving to completion of any remaining regulatory actions and following that product launches.

AFP Pharmaceuticals share price summary

The AFP Pharmaceuticals share price has risen more than 65% since COVID-19 impacted in March. Only last week, the company reached an all-time high of $5.25 after trading at $3.10 just over 8 months ago.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

Smiling man with phone in wheelchair watching stocks and trends on computer
Share Market News

5 things to watch on the ASX 200 on Monday

A good start to the week is expected for Aussie investors. Here's what to watch.

Read more »

A businessman compares the growth trajectory of property versus shares.
Opinions

What's the outlook for shares vs. property in 2025?

The experts have put out their new year predictions...

Read more »

a man sits at his desk wearing a business shirt and tie and has a hearty laugh at something on his mobile phone.
Broker Notes

Top brokers name 3 ASX shares to buy next week

Brokers gave buy ratings to these ASX shares last week. Why are they bullish?

Read more »

A young man pointing up looking amazed, indicating a surging share price movement for an ASX company
Broker Notes

These ASX 200 shares could rise 20% to 40% in 2025

Analysts are tipping these shares to deliver huge returns for investors next year.

Read more »

A transport worker walks alongside a stack of containers at a port.
Share Market News

Here's how the ASX 200 market sectors stacked up last week

Industrials came out best amid another bad week for the ASX 200, which fell 2.47% to 8,067 points.

Read more »

Cheerful boyfriend showing mobile phone to girlfriend in dining room. They are spending leisure time together at home and planning their financial future.
Opinions

My ASX share portfolio is up 30% this year! Here's my plan for 2025

The best investing plans shouldn't need too many updates.

Read more »

Animation of a man measuring a percentage sign, symbolising rising interest rates.
Share Market News

Here's when Westpac says the RBA will cut interest rates in 2025

Will the RBA finally take interest rates lower in 2025? Let's see what is being forecast.

Read more »

Shares vs property concept illustrated by graphs in the background and house models on coins.
Share Market News

Shares vs. property: Biggest investment trends of 2024

As another year of investing draws to a close, we review the most significant trends.

Read more »