AFT Pharmaceuticals Ltd. divested its noncore hospital products in New Zealand to Baxter International Inc. to focus on its higher margin over-the-counter offerings.
The company agreed to sell the assets to Baxter Healthcare, and said it expects to complete a similar agreement for noncore products in Australia within a few weeks.
AFT Pharmaceuticals will receive about NZ$5 million in cash from both transactions, which it plans to use for its international expansion plans.
The New Zealand divestment is expected to be completed on March 29, while the Australia divestment is expected to be completed in May or June.
The non-core products contribute about 7.5% of the company's operating revenue, AFT Pharmaceuticals said in a news release. CEO Hartley Atkinson noted that this revenue will be "more than replaced" within fiscal 2019, through the company's existing over-the-counter and new targeted hospital products.
As of March 20, US$1 was equivalent to NZ$1.39.