Local drugmaker AFT Pharmaceuticals has downgraded its earnings forecast because of stalled licensing negotiations and disruptions to its supply chain.
AFT Pharmaceuticals' revenue for the year was expected to be about $110 million, a 4 percent lift on last year's result. Photo: 123RF
The company expected its underlying profit for the year ended March to be between $9 million and $10m, compared with its November guidance of between $14m and $18m.
"We are disappointed to be revising our guidance, a move which, to a large extent, reflects delays to licensing negotiations we expected to conclude in the 2021 financial year," AFT managing director Hartley Atkinson said.
Revenue for the year was expected to be about $110m, a 4 percent lift on last year's result.
Atkinson said Covid-19 travel restrictions had hurt its ability to conduct negotiations in person and interrupted audits of its production facilities.
"We remain confident, but cannot guarantee, that we can conclude these negotiations with financial benefits which will, if negotiations are successful, accrue in the new financial year."
The pandemic had also affected the production and distribution of its Maxigesic pain relief medication from its suppliers.
The company was looking for alternative sources of supply and looking to its face masks and hand sanitiser products to drive sales, Atkinson said.
"Meanwhile, we have continued to put in place licensing and distribution agreements that set the company up for the future."
