AFT sees upside from restricted codeine sales

AFT Pharmaceuticals managing director Hartley Atkinson rings the bell to signal his company's sharemarket listing at the NZX in Queen St, Auckland. Photo / File

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, said Atkinson.

"The lead time until Feb. 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 signaled Australia would be a key market.

The stock was unchanged at $2.75, having fallen 13 percent so far this year.