AFT Pharmaceuticals Limited (AFT) Earnings Call Transcript & Summary

Okay. [Foreign Language] Good morning, and welcome to AFT Pharmaceuticals Annual Meeting. I'm David Flacks, Chair of AFT. I'd firstly like to direct your attention to this important notice on the presentation, which, along with my prepared remarks, has been released to both the NZX and ASX this morning. On behalf of the Board, thank you for attending the 2021 Annual Meeting. We have this year enabled the option to join the meeting by audio conference, and we extend our thanks to those of you who have joined by this means. We will be using slides during the meeting. These have been posted to the NZX and ASX and are available on AFT's investor website. For those of you who have joined by audio, you'll be able to see these and follow along. Before we start with the formal business of the meeting, I do have a couple of housekeeping points. I'd be grateful if you could make sure your phone is switched to silent. And in the event of an emergency, please make your way out through the door which you came through and follow the instructions of the staff. And could I also ask if you've not already done so to scan the QR tracing code on your phone before you leave. Let me start by introducing those on the stage to you: Hartley Atkinson, who'll be presenting to you shortly; Jon Lamb on the far side; Doug Wilson, here; and Marree Atkinson, here as well. One of our new directors, Anita Baldauf, unfortunately, can't be with us today as she's unwell, but you will hear from her later. And also Jim Burns, who's based in the U.S. is attending by audio. Jim is retiring today and not seeking reelection. Our other U.S.-based Director, Ted Witek, also clearly is not able to attend, and he's going to be attending by audio and will also talk to us shortly. I would just like to mention that Doug Wilson was named Senior New Zealander of the Year at this year's New Zealander of the Year Awards, a well-deserved accolade and one that we at AFT are very proud of. Our auditors, Deloitte, are here in attendance and available to answer questions later in the meeting and our lawyers, Harmos Horton Lusk, are also present. Could I also introduce you to some of the senior management team who are here with us today? And perhaps you could stand as I call your name: Malcolm Tubby, CFO and Company Secretary; Ioana Stanescu, Head of Drug Development; Vladimir Ilievski, Regulatory Affairs Manager; Louise Clayton, Director of International Business; and Murray Keith, Group Marketing Manager. So you can find details of all the directors and senior management team in our annual report and on our website. The company's constitution prescribes a quorum requirement of 5 shareholders. As you can see, this requirement has been met. Accordingly, I declare the meeting formally open. The items of business for this meeting and the resolutions to be considered by shareholders are contained in the Notice of Meeting, which was sent to shareholders on the 6th of July. So in terms of the order of the meeting, to kick off, I'll say a few words, following which AFT's Founder and Managing Director, Hartley Atkinson, will give a presentation. We will then consider the formal business and resolutions of the meeting. In relation to the resolutions, there will be opportunities for shareholders to ask specific questions as we address each resolution in the formal part of the meeting. And there will also be an opportunity to ask general questions after Hartley has given his presentation. At the close of the meeting, we hope that you will join us for refreshments. It's a great pleasure once again to be standing before you to report on the past year and the outlook for the year ahead and beyond. I clearly remember the evening prior to last year's proposed annual meeting, when at about 9:00 p.m. in the evening, the Prime Minister announced a lockdown for the next day and we had no choice but to postpone the meeting and hold it virtually. These are indeed strange times. And there is no doubt that the pandemic has impacted the entire global economy. Although the pharmaceuticals and health care industries should be relatively protected from the general ebb and flow of economic activity given health care needs are fairly constant, nevertheless, when faced with a global event such as COVID-19, it is unlikely that any company is able to escape unscathed. That said, we're pleased with how AFT has performed during this period. And while we bear some battle scars, AFT is emerging from this as a stronger and more resilient business. Let's start with the positives. First, AFT has once again extended its long-standing record of year-on-year growth. As this slide shows, revenue has grown at a steady pace over the last 2 decades. In the most recent decade, we've delivered compound annual growth rate of 13%. We have delivered sustainable growth by identifying health needs and developing and distributing clinically proven solutions to improve health outcomes in our markets. This remains our focus for the year ahead and beyond. And we are confident that it is a strategy that will continue to drive increases in shareholder value into the future. However, these top line results do not reflect the many pandemic-related disruptions that we have faced. Hartley will talk to these points in more detail but I do just want to emphasize these issues upfront. We've had to overcome significant supply disruptions, delays to product launches, delays in obtaining regulatory approvals, disruptions to clinical trials and delays in finalizing licensing and distribution agreements. Pandemic-related lockdowns, travel restrictions and overseas government-imposed limits to medicine supplies also disrupted sales through our over-the-counter hospital and prescription channels. The financial effects of the pandemic are most noticeable in the operating profit result, which was lower than the prior year for the first time in 4 years at $10.7 million. However, due largely to our resilient performance over the year and the refinancing of our debt at the start of the financial year at much more attractive rates, we have more than doubled underlying net profit after tax to $7.7 million. This is a record to be proud of and reflects AFT's clear focus. Despite the challenges of COVID, AFT has grown in strength in the last year. Total assets and shareholders' equity have increased considerably while we've reduced net debt to $35 million. The refinancing that we undertook at the beginning of the financial year reduced our interest costs from nearly $7 million in FY '20 to $3.4 million in the last financial year, and operating earnings cover these costs by more than 3x. We took the decision to invest approximately $10 million into inventory because we foresaw the potential for global supply chain disruptions. In hindsight, this has proven to have been a good decision. We intend to maintain these elevated levels of working capital until we are confident that these disruptions have been resolved. I should add that AFT showed its agility and ability to respond quickly to the pandemic by introducing products such as face masks, developing our e-commerce platform, extending our lipo sachet products and developing our Crystawash Extend product range. The Board continues to target debt levels of between $25 million and $30 million, and it remains our intention to consider a dividend policy once we've reached that level. AFT is now looking ahead beyond the current turmoil to a time when the world has overcome the current challenges of the pandemic. The future we see is a company with a larger and stronger business with an expanded product portfolio in our core markets in Australasia, a growing presence in Asia and a significantly expanded international business founded on our family of Maxigesic pain relief medicines but also introducing new products such as Pascomer and our nasal nebulizer NasoSURF. Reflecting this vision, the Board has developed and periodically reviews and updates a comprehensive skills matrix to inform succession planning. The matrix considers each director's experience against identified industry-specific and broader governance-related skills. Industry-specific skills identified as being particularly relevant include global pharmaceutical industry experience, pharmaceutical regulatory and ethics experience, pharmaceutical manufacturing and quality, R&D product development for drugs and devices, commercial operations experience both domestic and international and pharmaceutical sales and marketing. A summary of this matrix will be shared in the next annual report. In line with our evolving needs, we have recruited 2 new independent directors with the skills and experience to help us on that journey. Anita Baldauf comes to AFT with broad international experience in fast-moving consumer goods and corporate finance, having gained experience with multinationals such as Nestle and L'Oreal. Ted Witek brings to AFT more than 3 decades of international clinical development and leadership experience in the pharmaceutical industry. He also has an in-depth understanding of North American pharmaceutical regulators and markets. You will hear more from Anita and Ted later in the meeting. But on behalf of shareholders, I want to thank you both for the way you've already contributed to the Board and AFT in the short time that you've been involved. Ted and Anita replaced Nate Hukill, who retired in June last year; and Jim Burns, who today retires from the Board after nearly 7 years as an Independent Director. Jim has played a key role in AFT's development, assisting the company through its initial public offer, our listing on the NZX and ASX and our international expansion. He has prepared a short video address, and I'd like to play that for you now.

Hello. My name is Jim Burns, and I am pleased to be with you today from my home in the U.S. As of today, I am retiring as a member of the AFT Board of Directors, having joined the Board prior to AFT's going public. My background has been as a Co-Founder, CEO and Director of multiple public and private companies in the pharma, diagnostic and medical devices industries. It has been my privilege to work with Hartley, Marree and the teams through major growth and international expansion of AFT. I depart knowing that AFT is really good -- is on a really good footing. Certainly, fast-growing New Jersey pharma company operating in the global market. The company has a solid product line and a strong competitive position. Key features, at least from my perspective, for a strong growing pharma company: AFT has a diverse product line, OTC and prescribed medications, strong patent portfolio, strong R&D capability and a solid management team, including superb marketing skills. It is one of the top performers in the space and certainly for its size as ability to work with regulators to register the products in multiple countries. This is a top pharma company requirement that is really quite unusual in a small company of AFT's size. And the company has built international partnerships and distributorships, which will carry on in the future and cause continued expansion and growth for the company. So at least in my view, coming off with the Board now, the groundwork has been laid for continued global expansion for AFT. And it's really been my pleasure working with Hartley, Marree, the team and the Board all on helping to build the company. I'm very optimistic for the growth of the company, and I'm optimistic for its ability to continue to have a place in the pharma industry and a place in a global pharmaceutical marketplace. So with that, I want to thank all of you as shareholders for your continuing support of the company. I know as a shareholder, I continue to support the company. And I look forward to seeing the company continue to expand in the future and have a great time. And again, thank you all for your confidence in the company. And thank you for Marree and Hartley and the team for allowing me to participate with you on this fast journey. Thank you all so much. Thank you.

Thanks, Jim. So Jim has provided the Board and AFT with clear thinking and great advice. And on behalf of shareholders, I would like to thank him for his time on the board. On a personal note, I'd like to thank Jim for the guidance and support that he has given to me during our time together on the Board. A further evolution in our governance follows the recognition of the growing appetite among investors for information, explaining how environmental, social and governance factors influence and drive value in our business. AFT is built on integrity and a clear purpose of working to improve the health of its customers. It's a mission that has at its heart a commitment to sustainability, the maintenance of best practice corporate governance, the highest ethical standards and a determination to contribute positively to environmental and social outcomes. However, for these statements to have meaning to our stakeholders, we understand our efforts need to take place within recognized frameworks that allow them to compare performance across companies, sectors and borders. So recognizing this, we, last year, benchmarked our ESG performance against our peers, the NZX Corporate Governance Code and Guidance Notes and Standard & Poor's Assessment of Material Issues for the Pharmaceutical Sector. The review, which is detailed in the annual report, has demonstrated that the company has made further progress on a broad range of fronts. It has also identified opportunities for further progress. AFT is determined to take a pragmatic approach to these matters. We see them ultimately as an extension of our duties and obligations to our shareholders and our broader stakeholders, including our people, our customers and the community, more generally. As an initial comment, I think it is relevant to remind shareholders that Maxigesic is a proven analgesic and that it does not contain opioids. We all know that opioid abuse is a significant problem in the United States, but it should also be noted that it's a real and growing problem in both New Zealand and Australia. Hartley will talk about the Maxigesic line extensions, including Maxigesic IV, which is designed to be used in the hospital system and then as an alternative to opioid IVs. But AFT is not just a 1-product company. Although we are proud of our Maxigesic stable of products, AFT now has more than 130 individual products with approximately 300 SKUs in the market. I would encourage you to look through our annual report, which provides more detail on our ESG initiatives. For example, I'd also like to point out the progress that we've made driving sustainability in our packaging of products. This is a great example of an initiative that not only makes sound business sense but is also good for the environment. And we will continue to identify and progress such initiatives. I'm proud of our efforts to make our products available where there is an urgent need, for example, our eye care products to firefighters in Australia. And over many years, we've assisted charities working to improve health outcomes in developing countries. Again, these are detailed in our annual report and on our new website, which I encourage you to review when you get a chance. Turning to the outlook for the year ahead. It's clear to the Board that the pandemic and the associated travel restrictions and supply chain disruptions will continue to pose a challenge to the company, at least in the immediate future. We're encouraged by the significant ramp-up in vaccinations in important target markets such as U.S., Canada, Europe and China. However, new COVID-19 variance, low vaccination rates in developing markets and vaccination resistance all elevate the risks of continuing disruptions. The government has indicated it wants an export-led recovery. We're supportive of that and are ready and willing to play our part. We urge our government to work with industry and with us to enable our people to travel overseas to conduct essential work. We fully support a careful risk-based approach. However, we do not believe the current border restrictions are calibrated to take account of essential travel needs of those who have been vaccinated. As an example, we really need to have one of our senior staff to be able to travel overseas in the near future in order to finalize a multicenter global clinical trial, which is at a critical point. Importantly, a successful conclusion of this study will help to make a treatment available to sufferers, including children of a disfiguring facial skin disease. AFT prides itself on its resilient culture, and we're determined to work through these challenges just as we have over the past 1.5 years. We've done what we can through Zoom and other such tools as well, but in many cases it cannot replace face-to-face interaction. In the face of the ongoing risks to our supply chain, we believe it is appropriate to continue to maintain higher levels of inventory than we would normally hold. Ultimately, we remain confident about our prospects for this financial year. Despite some headwinds in Australia, with the ongoing lockdowns, we are overall trading in line with expectations. We expect continued growth in the year ahead and we maintain our target of an operating profit of between $18 million and $23 million. That target is, of course, contingent on no material change to current trading conditions. So on behalf of shareholders, I want to thank the AFT team for their work and the results that they have delivered in what have been very testing circumstances. I also want to thank Hartley and the rest of the Board for their efforts and commitment to the company's growth and prosperity. And finally, I'd also like to thank you, our shareholders, for your ongoing support for AFT. I will now invite our Managing Director, Hartley Atkinson, to address the meeting.

Thanks, David. Thanks, everyone. Look, what I'd like to do is to go through some slides to give you a bit more of an overview of the company because I think what may be picked up and even chatting just before the meeting. We talk a lot about Maxigesic. But as David has tried to mention, the company actually has a lot deeper product portfolio than 1 product, although I'm not saying that it's not important but we have sort of got quite a broad portfolio. I mean in terms of our strengths and our growth, as we're saying, there is this broad portfolio, which we have also extended as well. So effectively, we've really got 3 pillars to our business. We've got our Australasian business, Australia and New Zealand. We've got Asia and then we've got international. So what we do rely on certainly locally in Australia and New Zealand is in licensing products. So during the pandemic period and the lockdowns, we certainly were very busy increasing our in-licensing. And I mean in some ways, that was arguably made easier by the pandemic because people were more prepared to deal with us on Zoom and things like that. So we're probably actually more efficient and got more in-licensing done than what we would normally have done, which is actually a very good positive. In terms of our Australasian business, which presently, at the moment, as you know, is the major part of our business, being close to about $100 million. But look, we don't want people to think because it wouldn't be true that this is sort of a bit of a sunset business, where it's going to chug along growing very slowly. I mean we're working very hard on increasing this business. And we would want to grow it significantly over the next 5 years. And that's certainly part of our plan. And we are executing well within that market. Like, for example, in the eye lubricant category, which in Australia is a very big market with it being hot and dry really certainly helps these sort of products. I mean we were able last year to move from the #3 position to the #2 position. So we overtook Allergan, which as those of you that know the industry, Allergan is a very big eye care company. But yet we were able to overtake it, which is a pretty good achievement. And then also in terms of Asia, when we first sort of started and we first floated, I think those of you that have been with us a while will recall we always talk about Southeast Asia. And what really we were talking about was Singapore and Malaysia and not really much further. But actually, since then, we have made a lot of progress. We've actually broadened out our licensing to other parts of Asia. Last year, we were able to conclude deals in Indonesia, Korea, Pakistan and Thailand, which clearly takes us further afield than our original agreement. And what we also did was we extended our presence and started to work in China. Clearly, China is 1.4 billion people. That is the big chunky market in Asia. And what we did initially is we opened a Tmall site. So that's their version of Amazon. Very big, very popular way in China of buying products because they are very digitally focused, which actually happened going right the way back to the previous SARS epidemic, where their e-platform sales really rocketed. So they're very used to -- in fact, more used to than us in buying stuff over the Internet. So we started with our trial. We took 3 products. We took Ferro-Sachets. We took Vitamin C Lipo-Sachets and Vitamin D Lipo-Sachets. And look, at this trial, which we started back in about September last year, AFT is working very well. Almost surprisingly, we were selling more Ferro-Sachets on our Tmall site than we were in the whole of Australia and New Zealand. So certainly, some products have actually really gone well. And what we're doing now is we have the opportunity to expand it to include pretty much all our over-the-counter products. So that's what we are just executing at the moment. And I mean this also acts as a foil towards the Daigou trade, where some of you probably heard with some companies. They relied quite a lot on the Daigou trade, which is local Chinese students in Australia and New Zealand or Chinese residents that would buy product and send them back to China. So the Daigou trade clearly with border lockdowns and the pandemic has become less of an influence. It wasn't our major channel, but it was certainly one that we sold some products through. But this is our -- this is us pivoting to look to work around the fact there's less Daigou trade at the moment. And then in terms of global licensing, we extended our Maxigesic registrations. We increased the number of countries we're selling in. And look, I mean, to be frank and to be honest though, the pandemic did restrict -- even though we're doing these launches, it did restrict the sales uptake because if you're trying to launch, and we did delay it, Maxigesic IV into Europe, if all the hospitals are closed down with the pandemic, it's not really easy or practical to launch an intravenous drug. So therefore, we did, as David mentioned, yes, we did have some delays. But we're now seeing hospitals are opening up and things are definitely freeing up a lot in Europe and a lot in the U.K. This thing has decided to play out. I'm really sorry. I'll just get rid of this and push that.

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Yes. Well, sorry, it's working now. It was just doing a scan. Okay. So look, in terms as well of leveraging our global markets as well, one of our other capabilities we probably don't play off a lot or might not have explained enough as our R&D capability. We've learned a lot over the last 5 years since we floated about R&D. We did -- you're always learning. But certainly, we have also learned a lot. We're able to do very cost-effective R&D. Like, for example, one of our studies on the orphan drug side, these studies are always expensive and difficult to run. Our partners tell us that would cost about USD 50,000 a patient. We're able to execute this sort of study for about $13,000 a patient. A lot of legwork on our part but that is really a key thing. We have our own internal R&D department run by Ioana, who you've met before. And so that really is a key thing. So basically, there's the R&D. Manufacturing as well, we've done a lot of work on that. Our regulatory team and our R&D team actually did. Like in Europe, we did 1,260 variations to add manufacturing sites to make sure we didn't have too much influence from certain manufacturing areas like India. We were able to add a European site using Eastern Europe. And that gives us a lot more flexibility and security of supply going forward. So that was important as well. And then look, just quickly looking at our different markets because like we say, there is the Maxigesic. But we do have well-established local Australia, New Zealand markets that do perform well and do have good growth potential. The real exponential hockey stick growth comes in our international markets. But these markets still are good business, and there's a lot of growth potential. So we grew the Australian business to $68 million last year. There certainly were some COVID challenges in Australia as well. We had some lockdowns and things. But despite this, we're still able to get growth. We would have got more growth if it hadn't been for COVID. But still, we were able to get that growth. Maybe what's important to explain as well is it's not sort of a random process. We generally have about 7 key categories that we work in. So pain is things like Maxigesic, but we do have other pain products. Eye care is one of our current big areas. We have a basic -- what we do with eye care is all our products are preservative-free. The problem with preservatives in eye drops, it's a bit like diluted dishwater. So if you think about -- if you want to put diluted dishwater in your eye, it's going to kind of irritate it over time. The advantage of preservative-free is clearly that it doesn't have these preservatives in them. So it's better-tolerated, which, obviously, are things like lubricating eye drops that people use time and time again is pretty important. Medicated vitamins as well. We have a big iron market in Australia with medicated iron products on the PBS and selling to doctors; allergy, gastrointestinal, dermatology. We also do have a big hospital business as well, and that certainly performed pretty well during the pandemic. We generally saw the Australian health authorities were actually a lot more proactive. They talk to us closely. They increase stock holdings of critical antibiotics and things like that in case there was major pandemic effects. So it was sort of interesting to see the difference between the 2 countries. Australia certainly planned out those sort of things and executed more than we saw in our local New Zealand market. New Zealand, we had an interesting time. As you're all well aware, we had quite a major lockdown, so we really couldn't do a lot. All our sales force was basically locked up. Look, we were able though to still grow sales a bit, probably though the year before. To be frank as well though, we did have quite a boom in sales right at the end just before lockdown. We did have quite big stock holdings of our winter products at that stage, like Vitamin-C Liposachets, and we literally sold about 20x our normal sales in 1 month. So that's one of the reasons that the year before kind of had that big jump. But certainly, we still managed to grow sales. And what we're doing at the moment is we've in-licensed a lot of products and we're doing new launches at the moment. As David mentioned, Australia, we have got a rolling kind of lockdown, some state-to-state presently. We've certainly seen in New Zealand though, at the moment, sales are growing pretty strongly because things have kind of freed up and we're getting good New Zealand sales growth, and our reps are able to operate easily. And then look, Asia. So as I mentioned before, it's changed from Southeast Asia to Asia, which is important. We've done work with partners, which we employ, to run these things like T-Mall and [ part of linking into T-Mall, this little red book ] and things like that. The thing about e-commerce actually, as I know, is sometimes, you talk to people and they kind of think you just stick it on the Internet and then it kind of runs itself. It's actually very, very labor-intensive. So that's why we work with people that literally have whole teams based in Guangzhou, and then they make sure that everything runs properly. So certainly, our trial, as I mentioned, at the moment, has gone very well, at least up to expectations. And now we're pushing on to that next stage to leverage that. We did have a planned slight drop in sales, but we did that to also improve margins. So margin last year improved significantly in Asia. But I mean, the key thing really is that those current sales are only really a foothold, and we will be looking to significantly grow those over the next 5 years. I mean just for example, we do have our first product in registration in China right now. So yes, we will then have other products coming in. So China clearly is a big market, and we have got our first products that we're working on there. So long term or medium term, we see there's a lot of potential. But as well as that, we're getting growth in Singapore. Malaysia was certainly very impacted by the lockdown, and they had very hard lockdowns pretty much the whole year. So certainly, Malaysia last year was definitely hit quite a lot. But we are doing launches as well in Hong Kong, and we strengthened that side. What we've done is we've looked at where we're going to get big growth in the next few years as part of our planning process. Certainly, Asia, China was one of those. So we've established a separate office now in Hong Kong. We've employed someone there. So we're starting to build that. And then as well as that, we've also started, as you may have seen, an office in Europe as well because when we analyze our sales, we also see Europe sales are going to be quite significant as well. So this is our international. Talking about Europe, we were still able to grow the business last year. We did see, in last year versus the year before, we actually had less licensing income. We had work, and some of you may have picked up and seen, we did a large IV deal with Hikma for the United States. The upfronts and milestones for that are published, so about USD 18.8 million will come over the next few years. The major value though comes, basically, we have a profit share agreement with Hikma. So they are one of the largest suppliers of injectables to the U.S. market. And most of the money though will still flow from the profit share that we have with them. And we also supply product to them as well. So there's basically sales and income from product sales. There's additionally a profit share. And these are not inconsequential, but it isn't the major part of the pie, potentially $18.8 million of milestones and various payments as part of our agreement with Hikma. So yes, that's a bit about that. We've got over 100 countries, so we're increasing the number of countries. We've got licensees and distributors. A number of countries, we do have distributors as well. So it just depends really on the country as to how we structure that. But certainly, going forward, we see this, just under $10 million was a reasonable sales figure. But I mean, our aspirations and our plans as long as we execute is significantly greater than that. So Australia and New Zealand grows. Asia, we see we can get significantly more growth. International is where we see as well we can get significantly more growth as we execute. And as the effects of the pandemic start to fade, it makes it easier to launch products like Maxigesic IV. This is our global map that we've shown over time. What has happened is the yellow is where we are selling Maxigesic. The blue is where we've licensed it and is still in registration. Some of these places do take quite some time. And then the whitest areas, we have not yet had an agreement. The key areas that we see, there's significant holes that we're working on at the moment, is obviously China for Maxigesic. We have made good progress in China with a very strong local partner. And what we're going to work through with them is actually going to the regulator, sorting out the regulatory pathway. Both China and Japan are quite particular. You do have to do an additional, quite large, usually local study. So that's something we want to work through and scope out. And you would really want a partner to be able to work through that, with a local company. But I mean, there certainly are lots of strong local companies in China that are good to partner with. It's normally actually quite embarrassing almost because what they say is they say, "Oh, how many reps have you got?" And we kind of proudly puff our chest out and say, "Oh, we've got about 40 or 50." And they say, "Oh, yes. We got 3,000 or 4,000 or something." Okay, very nice. And the other place is Brazil. So Brazil is a really, really tricky market and we have been working on that. We are going to start registering anyway. What we sort of see will probably happen as we get closer to launch. We launch in the U.S. Brazil is very U.S.-influenced. And it will be much, much easier to license something once it's actually launched or close to launch in the U.S. The other thing we do see actually is despite, as you know, from the newspapers you see, there's always a bit of tension between the U.S. and China. China very much looks to the U.S. like they don't really care in terms of drug registrations and approval. They kind of don't really care about Europe. They say, "Oh, yes. It's registered in Europe. That's interesting. When is it going to be registered by the U.S. FDA?" So they really do look to the United States and the U.S. FDA. So that will work then quite well for us when we are filing Maxigesic IV in the United States as well. Here is the rollout. I mentioned a number of countries around the world. So last year, we went from 28 to 43. A lot of these launches did happen right at the end of the year, so they didn't really contribute that much to the sales. So it's really getting those full years then and starting to build the sales. What we're talking about at the moment is mainly tablets, and we've got another slide coming up. But just to explain, so because Maxigesic is not just a tablet, it's a whole family of products, and almost each of those individually is almost like a new product. Certainly, the IV very much stands out. Like if we analyze in 5 years' time and say, where do we think -- what will the sales look like about our estimates based on licensing forecast, our estimates are about 40% of the sales for international will come from Maxigesic IV. An independent market research, there's a company called DelveInsight, analyzed all the major markets. And they forecast, in the next -- they put the report out about 2020. They said up to 2028. The largest, newly launched injectable analgesic in the world, they estimated, would be Maxigesic IV. So they certainly saw that it had potential, and our licensees similarly are seeing a good potential for it. So that is a really key product. And I mean, we were able to really advance. And even just since the close-off of last financial year, we've still been able to add another 3 countries in terms of registrations. And what we are quite proud of is quite challenging as we also scored our first European approvals for Maxigesic Oral Liquid. Children's medicines are always really difficult from a regulatory perspective, even doing clinical studies in kids. It's like ethically really tricky, like you can't give a -- you really shouldn't, in most cases, give a kid a placebo. That's just not ethical, so we don't. But they are difficult because of that. They're difficult studies to run. Regulatory-wise, they're very challenging. But we basically managed to achieve that in July, which we're really pleased with. And then that gives us a setup to then expand that to the rest of Europe, and we're also working on Australia and New Zealand as well. So Maxigesic Oral Liquid is certainly one of the new product lines. And this sort of tries to explain just what we're talking about with Maxigesic. It isn't just sort of one product. There's a whole sort of list of them that stack on top of each other. First, onto tablets, as you're no doubt aware. Then the IV, we've launched that and starting to roll that out, but it's still very, very early days. The Oral Liquid, we haven't -- we've registered it but not yet sold it anywhere. We also have Maxigesic hot drink sachet. So it's a bit like if you've got a cold and flu, you pour it in with the hot water and take it before you go to bed. So it's that sort of product. It depends on the region, like they're reasonably used in Australia and New Zealand, but Eastern Europe and Russia or in places like that, where they have real proper cold and flus because it's properly cold because I mean, I went to Russia once in February. The warmest they got was minus 20 in Moscow. So we kind of don't know how lucky we are in some places. So yes, look, they take a lot of these sort of products. Maxigesic Rapid is an interesting product. So what we've done is we did a deal with a U.S. company that has a lot of technology about making nanoparticles in a very cost-effective way. You can often do these things, but then they're not cost-effective. These people have patented technology. We've got our first patents granted for Maxigesic Rapid, which then takes us out to 2039. So a lot of these products have different patents as well. Generally, with the tablets, it's probably not too important most times because as you build the brand, the brand is what people know. For instance, if you go to the supermarket, you'll know you can buy paracetamol, house-brand tablets, or you can buy Panadol. To be frank, despite we all know that, most people buy Panadol. So with Maxigesic, the patent goes until 2025 to 2028, depending on the jurisdiction. And even once that's come off, because it's primarily an OTC product, the brand will carry on and the product will carry on selling. Where it's particularly important though is things like Maxigesic IV, where it's totally a prescription product. So once the patent comes off, that will certainly be much more open to competition. But with Maxigesic IV, we've actually got 3 separate patents. So we've got a formulation -- we've got a ratio-type patent, which goes 2031 to 2034. We've got a formulation patent, which is pretty hard to design around, that's 2035. And we've got an additional manufacturing and formulation patent, which is also pretty protected as well through 2037. And I mean, these are grants. So this one was recently granted in China and has got a notice of allowance in the United States. Yes, so, and we've granted them in Europe. So yes, we've had some really good progress on this IP and patent area as well. And certainly, that is something with pharmaceuticals, yes, which is quite a challenge. But it's something that we have had a lot of success with. And then we've also got Maxigesic Cold & Flu. And we've also got the Dry Stick Sachet as well. So just to give you the sort of flavor, that it's not just kind of one product. Now as well, as David has mentioned too though, it isn't just Maxigesic. We do have a wider portfolio of R&D products. This graph here kind of gives you an idea about what we spend. So we are spending around about $9 million or so at the moment in the last couple of years. That's about 8.5% to 9% of our turnover. Quite a lot of big pharmaceutical companies actually do spend about 9% to 10%. Some of the top of the range are up to 15%. So certainly, people say to us, you're not really an R&D business, are you? But yes, we are. We spend as much as a lot of the big pharmaceutical companies overseas, about the same percentage. Having said that though, like I said to you, we're very cost-effective with our R&D. So even though that's what we're spending, we probably get a lot more value on top of it than that spend. We're not really targeting a set percentage though. We're really working bottom up, saying what R&D do we want to do, how much is that going to cost. So we sort of do it that way rather than starting off with a set percentage and saying we have to spend that. So basically, like I was saying, we've got a Maxigesic Cold & Flu. We're just completing final studies at the moment. So that one is well underway. The Pascomer, which David alluded to, we've got a multicenter study at the moment in about 16 or 17 sites around the world [ as remote ] -- we've gone from -- we've got a good site in Christchurch. We've got another in Queensland. We've got a site in Taiwan. And then we've got about 6 or 7 sites across the United States. We've got a couple of sites in Spain. Marree and I have personally visited the investigator a couple of years ago, and we had discussions. What a beautiful trial site. Honestly, the hospital there, you could eat your lunch off the floor. It's marble. It's state of the art. Some of these places have some very nice infrastructure as well. And then we've also got further sites in Eastern Europe, like Czech Republic, and then also Serbia as well. So we're getting pretty close to finishing the study. To be frank, it's been really challenging with the pandemic because a lot of patients won't go into hospital, where they should be, but with the clinics. We've had to do remote monitoring, a lot of different things. But we're generally getting very close to finishing the study. It probably is about 6 months later than it would have been. But certainly, we've been able to adapt and execute pretty well, considering. This case here is what it treats. It's something called facial angiofibromas, where patients get -- this is actually a really mild -- a pretty mild case, where they're getting growth on their face. And these get really, really bad and can block your nostrils up and block your eyelids, so you can't close them properly. So this is an important treatment. And this is a child, a reasonably young age, but it doesn't just go away. It gets worse and worse and worse. So this is a sort of mild case, which is just starting. And basically, this drug does stop that. We believe we'll be able to demonstrate that it will be able to stop the growth of these lesions, which is pretty important. So that one has been close to finished. We have also out-licensed that in North America to a company called Timber. And then we've also recently, last February, we completed another licensing deal for Europe to a very good German company called Desitin based out of Hamburg. NasoSURF is a drug delivery system. We are just about to start soon our first proof-of-concept clinical study. So it did take quite a lot of work to get the device fully developed. It is a very efficient drug delivery system. There is something slightly similar that's a German gold standard. That's about 10x the size of our device and performs 1/10 in terms of drug delivery. So ours is 1/10 the size of the German gold standard and delivers 10x more. And a lot of people that really know about this area really are quite surprised and say that they can't really be true, that it goes that much better than the top German technology. Usually, the only answer we can find is you would say, well, you know that boat that floats across the water in the Americas Cup, New Zealand can do some tech quite well. And usually, when you say something like that, they kind of get you. But otherwise, they're still looking at you, thinking about mountains and sheep and things and kind of nothing else. So that's gone well. And then, look, we've got other products. Medicinal Cannabis is quite topical. We've sort of gone down the route and pathways. We prefer not to debate the whole thing publicly. We think it's quite commercially sensitive. But I can say we've made pretty good progress, and we're carrying on with it. We believe we should be able to develop a product and navigate the regulatory structure in -- mainly Australia is the one we're most focused on because that's usually by far the bigger market, but also New Zealand as well. Crystawash Extend is a nice nonalcohol-based hand sanitizer. We've done a number of studies. For instance, it shows that it has a prolonged germ killing effect that goes for 24 hours. And what we've generally seen in a lot of countries, as with the pandemic, it's kind of reminded people about those basic hygiene things, to be real careful, there's a bit more mask-wearing than there ever was, more hand sanitization than there ever was. So this sort of product has sold well in Australia and New Zealand. We've also licensed at a number of countries, and they should spread out as well. And some, we have partners we work with in Europe. We're just generating some additional test data. And we got it tested in China by a lab there, had very good results, about the same as we got here. We've got a patent as well over at -- and -- as well. There's a patent granted, so that's Crystawash Extend. So there's that. And I was requested to put up some numbers. So I won't. I'm trying not to dwell on them too much. I'm not the CFO. But look, I think that the general point was despite the disruptions and everything else, the company has grown its sales for the 23rd, 24th year in a row. We have considerably strengthened our balance sheet. We've restructured our debt. We've done a lot of positive things. And I mean, overall, the normalized profit increased by about 2.7x and 2.9x to $7.8 million. So that was important. And being as well in terms of working capital, we have -- as David mentioned, we made the deliberate decision to increase by about $10 million our inventory. When we first did it, I think it was last year at the half year, we did get questioned by a couple of analysts as though this is something that just happened and we hadn't kept an eye on our inventory of stocks. But honestly, we've seen that as being a really important thing because we're at -- even our local sales guy was at a conference recently as the weekend. And some of the companies there didn't even have enough demonstration stock to put on their stand because they kind of more or less run out. We've got, generally speaking, we've got plenty of stock. So we see that as a pretty important thing. But even having said that, we have slightly expanded our working capital. But yes, we see that as kind of resolving. And I mean, this is the thing here, where you will notice that like our cash flow last year did not really improve. But then having said that, we did put an extra $10 million into inventory. So if you take that out of it, it did certainly -- the overall cash position was improving. I certainly do read some of those shared chat things. And I know one comment I read, someone said, "Oh, they didn't mention their cash flow. Is there a problem?" No, this is not a problem. It's just because, honestly, it's something that's actually we're not even, touch wood, we're actually not even worried about it. So the cash is going well. We've got sufficient to execute our business. We're not planning to do a capital raise or anything like that. And then next slide. So yes, look, just briefly -- there's only one more slide. Just briefly, as we said, it has been sort of a challenging year. But having said that, we have got a lot of things we've executed. We grew our key Australian market. We did get good growth in product sales. And the rest of the world, if you back out the license income, it grew by about 50%. To be honest, long-term, that's not enough. We look to grow it more than that per year. And then we did get a significant margin improvement in Asia as well, which is also what we want to do, and then grow sales in Asia. So look, we did have some supply disruptions. I mean a particular unnamed foreign government actually made quite a knee-jerk decision to ban all the export of any paracetamol product from its country, which is one of the reasons now we've diversified further our manufacturing base just to avoid that sort of thing impacting upon us in future. Some of the license and distribution agreements definitely took longer. Like everyone says about how lovely Zoom is, it is and good. But sometimes, I know, for deals, we've done them, we're literally -- we more or less got locked in a room with an Italian lawyer for about 2 days. And funnily enough, by the end of 2 days, it all got signed and done. But by doing it on Zoom, it can take a lot longer. And that's kind of what happened, to be honest. So yes, look -- but having said that, we still did do a lot of deals even though they took a bit longer, including the Hikma one. And we're well set-up, we believe, going forward. And then just last slide, I promise. This is the summary and outlook. So look, the key things really we're working on now is just really driving and delivering the international sales according to our 5-year plan over the next 5 years. And it's accelerating the number of countries as well. There are some countries like Russia, say, for example, which are on our launch target in the near future. And then we have got a number of newly launched markets, like Canada is certainly a nice, significant-size market, with a population of about 30 million people. Germany, we've just launched in that with our IV, and slightly earlier, we launched the oral dose form as well. And in Switzerland, even though the population is only about 8 million, it still is a nice, well-developed market with good, good sales. And we've launched there, and it's going well. They've ordered more stock. And then we've got our line extensions. It's pretty important in rolling out the Maxigesic IV. And then after that, the Oral Liquid, which we're certainly looking at our first launches in sort of the next 6 or 7 months sort of thing. Extending our licensing. So as I mentioned, we made good progress in China and we're happy with that. Japan, we're still working on that. But those 2 countries are 2 key ones. We do want to bank and benefit from these increased licensing payments. So I mentioned, even just the Hikma deal by itself does have potential payments of up to USD 18.8 million. So clearly, these, over a period of time, are going to certainly help the profitability. And this year, we do have a nice pipeline of licensing income, which should come to us over this financial year. And then also Pascomer, once that clinical study finishes and is analyzed, provided as positive, and then that also starts to trigger additional milestone royalty payment -- milestone payments for the Pascomer project as well. But I mean, look, certainly, last but not least, is really driving Australasian sales. We've got the line extensions, Oral Liquid. Australia is a big market for kiddies' Oral Liquid. So once we finalize the registration in Australia, we see that as a significant market. We have the hot drink sachets approved. So we will launch those in Australia and New Zealand as well. And literally, across both countries, Vlad's team is targeting 31 new approvals. So that's about 15 in Australia and about 16 in New Zealand. So this is all our in-licensing work I've talked about starting to flow through. But yes, there are the other products coming after that as well. So yes, it is really working on those new launches and expanding the business. So look, that's sort of it for me. Hopefully, it gives you a bit of an idea. The company has different pillars that we can grow in. Maxigesic is an important product, especially for international business. But we're not just a Maxigesic company. We do have a pretty broad portfolio. Yes, and that's -- we look forward to executing over the next few years. Thank you.

And could you please wait until there's a microphone because otherwise, those who are attending by audio won't be able to hear the question. And also, I ask that in the interest of fairness to all shareholders, anyone wishing to speak should be as concise as possible and considerate to other shareholders wishing to ask questions. But please, any question is very welcome. Gentleman here, over here at the back.

[ Gordon Hardie ] is my name. Just Hartley, I'm just going to -- wondering, the 137 products that you have, what percentage Maxigesic as a product totally owned by AFT? The other products, are you selling those as sort of like a distributor? Or are you -- are they all your patented products?

Yes. Generally -- Malcolm, you've got the exact number, haven't you? The...

Yes. It's around about 1/3 is AFT-developed product, 1/3 is AFT-branded products.

And we've in-licensed and have the full rights to it, ain't?

Yes. About 1/3 is other people's products.

Okay. Just the other question is with the stock. You've grown the stock substantially. What sort of stock turn are you working on?

Yes. We generally got about 6 months' stock, don't we, Malcolm?

Yes, 5 to 6. So long term, we're 4.5 is where we target, at the midway of 5 to 6.

Turns -- months. So it's only 2 turns a year?

About 2 turns, yes. Yes.

Other questions or comments? Yes, sir? The microphone is coming.

[ Adrian Williams ]. I've got a question about the Pascomer note that you had up there. The note said that it's still got Phase II and III trials. So if it's still under trials, how can you license it to someone else?

Yes. So generally, there's different approaches. You can license a product in any phase in its life cycle. So I think the thing with Pascomer is that companies regard it as a reasonable bet to license. I mean, obviously, it could -- heaven forbid, the trial might not work. I mean there's a fair bit of data published in the literature from compounded product like -- actually, Pascomer is topical rapamycin, which is an existing drug. And then there's quite a lot of data, about 400 patients' worth of data to show that it works. So I think we've got a reasonable -- and obviously, the licensees have a reasonable level of confidence that it's going to work. The thing that's been really challenging, though, is that -- and we're now contesting it, is a lot of these compounded products are very unstable. They're only stable for a couple of months. We have this technology that encapsulates the drug and protects it, and we have shelf life for 3 years. That's the sort of basis behind it.

Any other questions? Yes, sir?

[ Tony Green ], shareholder. I'd like to know -- could somebody please tell me how the share purchase plan was allocated out?

Well, the share purchase, that was -- you mean during the capital raise last year?

Yes. That's right. It was oversubscribed. How was it -- majority or...

No, it was all -- it was pro rata. But I think all shareholders still had an opportunity to actually fully participate to the extent that they would otherwise have done if it had been a rights issue. So it -- shareholders were not disadvantaged.

We're biased there, actually. Didn't we, too? I mean, actually, honestly, private shareholders were biased positively for. You had a bigger percentage. It wasn't an outcome of potential shares than if we'd done a rights issue, wasn't it?

Yes.

And did better than...

[indiscernible]

Yes.

Which is better than it would have been -- it would have been a rights issue.

Yes. So we did listen pretty carefully. And yes, honestly, we were pretty aware that we didn't want -- I mean we have lots of our personal friends who are also shareholders. And my wife didn't want her gym partner coming up to her and saying, "Hey, why the hell didn't you give me some shares? You're a nasty lady." So we're actually pretty -- honestly, we're pretty conscious that we did want to do the right thing.

So was it pro rata?

It was all entirely pro rata, yes. Okay, well, look, thank you. As I mentioned, we're going to be around here to answer questions during refreshments. So please do come and nab us. Okay. As there are no more questions, we're now going to come to the formal matters requiring resolution, which are outlined in the Notice of Meeting. And there will be an opportunity also to ask questions on each of those specific matters which have been put to shareholders. So as is now required by the listing rules, a poll will be conducted for each of the resolutions. And the poll will be conducted altogether at the end of the formal business. Your Board supports each of the resolutions being put to the meeting. And as stated in the Notice of Meeting, each director intends to vote all their shares and undirected proxies held by them in favor of the resolutions. Proxies have been appointed for the purposes of the meeting in respect of about 85 million shares, which represents approximately 81% of the total number of shares on issue. Okay. Resolution 1 relates to the remuneration of AFT's auditors. The proposed resolution is to authorize the directors to fix the auditor's remuneration for the current year. In accordance with the company's act, Deloitte has been automatically reappointed as the company's auditor. Details of the statutory audit fees paid to Deloitte for the financial year ended 31 March 2021 are set out in the 2021 annual report. The 2022 audit fees are expected to be comparable to last year's with provision for an increase as the audit scope broadens with the company's expansion. I now propose as an ordinary resolution that the directors are authorized to fix the expenses -- fees and expenses of Deloitte as auditor for the 2022 financial year. Are there any questions concerning this motion? Thank you. The poll on this resolution will be conducted at the end of the formal business, and we will now move to the next resolution. So actually, the next resolution concerns my reelection as a director of the company. So accordingly, I've asked Jon Lamb, who is the Chair of the Audit and Risk Committee, to chair this part of the meeting.

Good morning, everyone. David is retiring by rotation in accordance with the listing rules and other -- and offers himself for reelection. The Board recommends David as an independent director and unanimously supports his reelection. His bio has been set out in the Notice of the Meeting. I now invite David to briefly address the meeting on his proposed reelection.

Thank you, Jon. It is a privilege to be before you shareholders, again, seeking reelection to the Board of AFT. So I joined the Board just prior to the IPO, which was in 2015. And my skill set was and remains very different from the rest of the Board. I have now picked up some knowledge about pharmaceutical industry. But essentially, my skills are in governance, strategy, finance, regulatory and legal. And these have been developed after a long career, both as a corporate lawyer for Bell Gully and also as a general counsel and company secretary and as a member of the senior executive team at Carter Holt Harvey, when it was the largest industrial listed company on the NZX. So I'm now really just involved in governance roles. I also chair the Suncorp New Zealand group of companies, which includes Vero Insurance, Vero Liability and Asteron Life. And I chair Harmoney Corp., which is now listed on the ASX and NZX. And I'm also a director of Todd Corporation and a number of pro bono environmental companies funded by the NEXT Foundation. I've stepped down from my regulatory roles, which included in the past being chair of the NZX Regulatory Governance Committee. AFT is a terrific New Zealand company. I believe that we've got great potential to take on global markets, both at our existing product range and with the new products being developed. I'm working with a highly skilled Board and a terrific management team. They have the expertise in the critical areas of pharmaceutical development, R&D, global marketing. So I see my role as working closely with Hartley and the rest of the Board and the rest of the management team and to try and help to harness that great potential. We've just had 2 terrific days of strategy and Board meetings. And we've been looking out over the next 5 years. And I will do what I can to ensure that we execute on that strategy and that we do so in the right way. So making sure that on the way, we look after our many stakeholders, our staff, our customers, our suppliers, the communities that we work in and, of course, you, our shareholders. So as Chair, I'm also conscious that the Atkinson Family Trust is still a majority shareholder in AFT. And I want to assure shareholders that I see my role as looking after the interest of all shareholders. That means, at times, Hartley and I may have some interesting and robust discussions, but we have a strong and respectful working relationship. I'm proud to represent this Board and AFT as your Chair. And I'd like to thank you for your continuing support. I will continue to work hard to ensure that AFT meets its incredible potential. Thank you.

Thank you, David. I now propose that David Flacks be reelected as a Director of AFT. Are there matters for discussion or questions concerning this motion relating to David from anyone? The poll on the reelection of David Flacks will be conducted at the end of the formal business. I will now hand back to David to chair the rest of the meeting. Thank you.

Thank you, Jon. Next resolution. As a recent appointee by the Board, Anita is retiring in accordance with the listing rules and offers herself for reelection -- for election. The Board recommends Anita as an independent director and unanimously supports her election. Anita's bio is set out in the notice of meeting. So although Anita cannot be present today because she's not well, she was able at the last minute actually to prepare a video of her address, which we're now going to play.

Good morning, everybody. My name is Anita Baldauf, and has been an Independent Director of AFT Pharmaceuticals now since November last year. And today, I'm standing here for reelection. And I would like to take the opportunity to introduce myself to you. So I'm originally from Germany, and joined Nestle at their headquarters in Switzerland now many years ago. This is from where I started my international covered career, mainly in finance. So I was the Finance Director for Nestle in many different countries in Europe. And one of the assignments brought me to Paris, where I was the CFO for Laboratoires Inneov, which was a joint venture between L'Oreal and Nestle, and where we developed, marketed and commercialized food supplements for the beauty of your health and your skin. And as you know, beauty goes through health, and this is the reason why we will commercialize food supplements in the pharmacy channel in almost 25 countries around the world. So this was an amazing experience, as all the other assignments and experiences I had with Nestle. But after 22 years of intense corporate career, I took the decision to make a life change. So I left Nestle in order to come to New Zealand and to start a new base -- home base here for my daughter and myself. This is now 2.5 years ago. And I'm very thankful to the people we met here in this country and who welcomed us so warmly. And we were really able to meet many amazing and interesting people. And one of the groups that I met in the Edmund Hillary Fellowship, which is a group of international change-makers, which are aiming for positive global impact from -- or for New Zealand. And I became a fellow now almost 2 years ago. One of the reasons really that I joined this fellowship was that they could very strongly connect to their values, which are, in fact, the values of Sir Edmund Hillary. It's all about humbleness, kindness and supportiveness, those values which I also could feel with you also in New Zealand that I met here when we arrived and since then, and definitely, that I could see in Hartley, Marree and David. And I believe this is really one of the main reasons that I agreed to join the Board of AFT Pharmaceuticals. But of course, since then, I was able to get to know the company, to meet the team, to see what they have been able to do. And [ that's amazing ], really. And I would like to congratulate the team for their success. I really love their entrepreneurial spirit. It's a very interesting way of getting things done. Interesting because it's efficient and fast, much, much cheaper and faster than many corporates would be able to do. And then really, I'm fascinated with the opportunity in the pipeline that AFT Pharmaceuticals has. And I would love to contribute with my background and expertise to the value creation for the shareholders for the near future.

Thank you, Anita. So I now propose that Ms. Anita Baldauf be elected as a director of AFT. Are there any matters for discussion or questions concerning the motion relating to Anita? Thank you. The poll on the election of Anita Baldauf will be conducted at the end of the formal business. We will now move to the next resolution, the election of Ted Witek. As a recent appointee by the Board, Ted Witek is also retiring by rotation in accordance with the listing rules and offers himself for election. The Board recommends Ted to you as an independent director and unanimously supports his election. Ted's bio is set out in the Notice of Meeting. Ted has also prepared a video of his address, which we're now going to play.

Hello. My name is Ted Witek, and I'm very pleased to be with you today. Just a few words about myself. I received my undergraduate training in health sciences from Quinnipiac College in Connecticut in the States. And that was followed by a Masters in Public Health from Yale University and my Doctor in Public Health from Columbia University in the city of New York. I did earn a mid-career MBA from Henley Management College in London. And I recently earned my ICD.D certificate in corporate governance from the Rotman School of Management here at the University of Toronto. In my early research career, I focused on obstructive lung disease, cough, cold and allergy. My first pharmaceutical position was with Richardson-Vicks, where I did study the over-the-counter cough, cold allergy market as well as analgesics, being part of the team that took naproxen over the counter, which was the first such OTC switch in the States. That was followed by a long career in big pharma with Boehringer Ingelheim, where I had the opportunity to develop many successful drugs. And my uniqueness is that I started my career on the bench, screening compounds. Spent several years in clinical research and then moved on to alliance management, where I co-chaired the joint operating committee with our 10-year alliance with Pfizer. And then moved on to serve as the CEO for the company, first, in Portugal and now -- then in Canada, where I currently reside. My last position was as Chief Scientific Officer for Innoviva in South San Francisco, where I was also responsible for the -- our alliance with GlaxoSmithKline in London. I'm very excited to serve as an independent director for AFT with its very robust Combogesic franchise and the diverse and exciting portfolio and pipeline. And finally, I do believe that my experiences with regulatory bodies in the broad market in North America will serve the firm well. So once again, thank you, and I look forward to the opportunity to be able to come down and meet all of you soon. Thank you very much.

So I now propose that Dr. Ted Witek be elected as a director of AFT. Are there any matters for discussion or questions concerning the motion relating to Ted? Thank you. The poll on the election of Ted Witek will be conducted at the end of the formal business. So you will now see on the screen the proxies that have been cast for each of the resolutions that we've just gone through. And now ladies and gentlemen, as there is no further business, we will conduct the polls on the matters described in the Notice of Meeting. Please could you use the voting card that you've received when you registered on arrival? And if you could complete the voting paper by ticking for or against or abstain in the appropriate place on the form for each resolution? If you've got any difficulty, please raise your hand and someone will assist you. And if you could remain seated until the voting card has been collected. And as you can see, Computershare on the way around with ballot boxes now. [Voting]

Okay. Thank you. Are there any matters of general business that anyone would like to raise? Otherwise, we can chat over a cup of tea or a cup of coffee and talk about them then. Okay. Thank you. As there appear to be no further matters for discussion, I now declare the meeting closed. So on behalf of the Board, thank you very much for your attendance at AFT 2021 Annual Meeting. We will announce the results of the polls to the stock exchanges this afternoon. And now I invite you to join us for refreshments, which are going to be served over here. Thank you very much, everybody.