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Highlight

  • AFT Pharmaceuticals and Hikma Pharmaceuticals extend U.S. distribution agreement for Combogesic products.

  • New deal includes expanded access, profit-sharing revamp, and joint marketing responsibilities.

  • AFT eyes growth amid rising demand for non-opioid pain relief options in the U.S.

New Zealand-based AFT Pharmaceuticals (ASX:AFP) has deepened its partnership with Hikma Pharmaceuticals in a new 2025 deal that will significantly expand the reach of its flagship Combogesic range in the United States. The Auckland-headquartered drug maker announced the agreement extension to shareholders on Monday, describing the deal as a strategic step toward capitalising on increasing demand for non-opioid pain management options in the U.S. healthcare market.

Under the updated terms, Hikma will now assume responsibility for distributing Combogesic Rapid — AFT’s fast-acting oral pain relief product — across all U.S. sales channels, excluding regions already covered by a separate agreement with Alexso Inc. Hikma had previously been the distributor of Combogesic IV, the intravenous version of the medication, used primarily in hospital settings.

In addition to expanding its distribution rights, the revised agreement includes a new profit-sharing model. This removes the earlier milestone requirement that had to be met before profit-sharing could begin. Now, AFT and Hikma will share revenues more equitably from the outset.

AFT will also now take on a joint role in marketing and sales efforts for both Combogesic Rapid and IV formats, marking a shift toward deeper operational collaboration between the two companies. This includes financial responsibility for promotional activities, reflecting AFT’s commitment to expanding its U.S. footprint.

In Australia, the Combogesic brand is better known under the name Maxigesic, a popular over-the-counter alternative to opioid painkillers.

Dr. Hartley Atkinson, CEO of AFT Pharmaceuticals, hailed the agreement as a win for both patients and shareholders, noting that U.S. clinicians have expressed a clear preference for a comprehensive, non-opioid pain relief regimen.

“Feedback from the U.S. has been that clinicians wish to follow non-opioid intravenous relief of mild to moderate pain with the tablet therapy — an approach that offers non-opioid relief through all stages of recovery,” said Dr. Atkinson.

He added that this dual-formulation approach — offering both IV and oral options — provides a compelling solution amid the ongoing opioid crisis, which costs the U.S. healthcare system an estimated $11 billion annually.

“With 6% of patients administered an opioid postoperatively going on to consume the medicine chronically, the two forms of Combogesic offer clinicians an opportunity to reduce the associated risks,” Dr. Atkinson said.

The strategic expansion is expected to help AFT tap into growing demand for safer, non-opioid analgesics in the post-operative care market. Shares in AFT were trading at $2.45 on Monday following the announcement.