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.
