AFT Pharmaceuticals (ASX:AFP, NZE:AFT) represented an attractive risk-reward profile for equity investors given the company's two-decade growth record, active US commercialization, and expanding international pipeline, Pitt Street Research said in a Friday note.

The specialty pharmaceutical company offers "significant upside" from a pipeline of new commercial opportunities that is being overlooked by the market, the equity research firm said.

It pointed to Combogesic as one of the company's most commercially significant assets, noting that the painkiller has secured a Medicare HCPCS J-code in the US and a national shelf presence through an agreement with Cost Plus Drugs.

Pitt Street values AFT Pharmaceuticals at AU$10.55 per share in a base case and AU$13.08 per share in a bull scenario, with its models showing at least AU$600 million of value to be unlocked in AFT's pipeline.

The company closed nine licensing agreements in fiscal 2026 and guided for fiscal year 2027 research and development investment of NZ$25 million, "suggesting a pipeline that is being actively monetized rather than held speculatively," Pitt Street said.

It added that AFT Pharmaceuticals increased its revenue every year for nearly two decades in "a record that is genuinely rare among ASX-listed healthcare companies of any size."

AFT Pharmaceuticals' Australian shares gained 4% in recent Friday trade, while its New Zealand shares climbed 6%.