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

A man sits in deep thought with a pen held to his lips as he ponders his computer screen with a laptop open next to him on his desk in a home office environment.
Share Market News

Spark New Zealand cuts debt by $240m via Challenger financing deal

Spark New Zealand reduces debt by $240m with a new receivables financing partnership with Challenger to support mobile growth.

Read more »

A man sits in deep thought with a pen held to his lips as he ponders his computer screen with a laptop open next to him on his desk in a home office environment.
Technology Shares

Why I think these 3 ASX shares are top-quality buying at today's prices

These 3 high-quality ASX shares have fallen out of favour. I think they all look attractive at today’s prices.

Read more »

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

It looks set to be a decent start to the week for Aussie investors.

Read more »

A man in a business suit whose face isn't shown hands over two australian hundred dollar notes from a pile of notes in his other hand to an outstretched hand of another person.
Opinions

2 strong Australian stocks to buy now with $5,000!

I’m excited by the potential of these two businesses.

Read more »

Broker written in white with a man drawing a yellow underline.
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 female ASX investor looks through a magnifying glass that enlarges her eye and holds her hand to her face with her mouth open as if looking at something of great interest or surprise.
Broker Notes

These ASX 200 shares could rise 20% to 50%

Analysts are expecting outsized returns from these shares in 2026.

Read more »

Farmer with arms folded looking ahead.
Broker Notes

What is Morgans' view on GrainCorp shares after monster sell-off?

Is it time to buy-low after the sell-off?

Read more »

Person handing out $50 notes, symbolising ex-dividend date.
Dividend Investing

Where I'd invest $10,000 into ASX dividend shares right now

I think these businesses are a strong buy for passive income.

Read more »