Market Trading Update

AFT Pharmaceuticals (NZX; AFT, ASX; AFP) today reports it is seeing strong current demand for its cold and influenza related medicines as customers build stocks following the Covid-19 outbreak. Our Australasian over-the-counter and hospital businesses have seen strong demand for our injectable antibiotics, our suite of analgesics (including our patented Maxigesic(R) pain relief products) and for our supplements such as Vitamin C Liposachets(R). Meanwhile, international demand for the company's Maxigesic medicines has also been strong and we have been working with our international partners to ensure an uninterrupted supply to our global customer base. This is not without challenges, given disruption to global trade routes caused by the virus. However, we are confident that any financial impact on the global business could in part be offset our local sales gains. AFT Pharmaceuticals Managing Director Dr Hartley Atkinson said: "As news of the Covid-19 outbreak emerged at the start of this year, we moved quickly to significantly build stocks of our key medicines in Australasia and we have been rewarded for this foresight. "By way of example, we sold $1.2m of Vitamin C Liposachets in New Zealand over 3 days alone which represented our prior 12 months sales. "AFT meanwhile supplies to hospitals across Australasia the injectable antibiotic Piptaz, which is used to treat pneumonia, a potential complication of the Covid-19 virus. We have seen strong demand for this product and our other injectable antibiotics as our Australian based customers have increased stocks in preparation for the possibility of a more serious outbreak. "While we have seen an uplift of revenue, it has come late in the financial year. We are therefore retaining our guidance for an operating profit for the 12 months to 31 March 2020 of $18.8 million to $21.8 million, although we now expect a result that is at the mid to upper end of this range," Dr Atkinson said. "AFT is monitoring developments related to the Covid-19 outbreak closely. At present we are unable to say with any certainty whether demand will be sustained beyond the end of the current financial year and if so for how long. "Importantly we have a diverse range of products from injectable antibiotics to patented analgesic and eyecare products. We will update the market as necessary". AFT will report its full-year results in late May 2020 For and on behalf of AFT Pharmaceuticals Limited, Dr Hartley Atkinson, Managing Director. For more information: Investors Media Hartley Atkinson Richard Inder Managing Director The Project AFT Pharmaceuticals Tel: +64 21 645 643 Tel: +64 9488 0232 About AFT Pharmaceuticals AFT is a growing multinational pharmaceutical company that develops, markets and distributes a broad portfolio of pharmaceutical products across a wide range of therapeutic categories which are distributed across all major pharmaceutical distribution channels: over-the-counter (OTC), prescription and hospital. Our product portfolio comprises both proprietary and in-licensed products, and includes patented, branded and generic drugs. Our business model is to develop and in-license products for sale by our own dedicated sales teams in our home markets of Australia and New Zealand and in certain Southeast Asian markets, and to out-license our products to local licensees and distributors to over 125 countries around the world. For more information about the company, visit our website www.aftpharm.com. End CA:00349708 For:AFT Type:MKTUPDTE Time:2020-03-10 13:42:15