Reporting Season: TPI Enterprises signs European codeine phosphate supply contract

By Trevor Hoey. Published at Aug 6, 2018, in Features

Name: TPI Enterprises Ltd (ASX:TPE)

Market Cap: $118 million

Last Closing Share Price: $1.38

Licenced poppy producer, TPI Enterprises Ltd (ASX:TPE) announced on Friday that it had entered into a significant multi-year supply agreement with one of Europe’s leading pharmaceutical contract manufacturing organisations.

Under the agreement TPE will ship Narcotic Raw Material from its plant in Melbourne to its Norwegian operations where it will be processed into Codeine Phosphate Active Pharmaceutical Ingredient (API).

The Codeine Phosphate API will then be delivered to one of the new customer’s several European formulation manufacturing sites for conversion into finished dosage tablets.

The agreement is for a three-year term with a minimum supply of six tonnes per annum, generating revenues of more than $9 million over the full period and $3.5 million in the 12 months to August 2019.

Few competitors in Australia

TPI is one of three licenced poppy processors in Australia, and the only one that’s Australian-owned.

It is one of only three companies globally that is vertically integrated from poppy growing through to tableting production.

TPI has developed an innovative, efficient and environmentally-sustainable extraction and purification manufacturing process which allows the company to deliver a highly competitive pricing platform.

The company’s strategy is to secure access to regulated downstream narcotics markets to leverage its reliable, cost-competitive upstream raw material capability.

Those considering this stock shouldn’t make assumptions regarding future sales, nor should they base investment decisions on performances to date. Those considering this stock should seek independent financial advice.

On track to meet or beat revenue guidance

TPI Enterprises chief executive Mr Jarrod Ritchie said: “This agreement illustrates TPI’s ability to effectively compete in this key segment of the opiates based API market, post the acquisition of the Vistin opiates business in October 2018.

“The strong customer demand we have experienced since the close of the acquisition has reinforced our belief that we are the most competitive producer of morphine and codeine based API products in the market today, and we are in the process of adding capacity at our Norway (Kragerø) facility to increase Codeine Phosphate production to meet this demand.”

Management took the opportunity to inform the market that it expected to meet or exceed revenue guidance of $20 million for the first half of 2018.

The company’s announcement prompted a 6.5 percent increase in the company’s share price on Friday.

The past performance of this product is not and should not be taken as an indication of future performance. Caution should be exercised in assessing past performance. This product, like all other financial products, is subject to market forces and unpredictable events that may adversely affect future performance.

View Our Investment Portfolios

S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

Conflict of Interest Notice

S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

Publishers Notice

The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.

Australian ASX Small Cap stocks | Why is Australia’s leading small cap publication

Founded seven years ago, is Australia’s leading and longest standing website for investor and finance news, education and expert opinion.

Published by StocksDigital, Finfeed was created to report daily on the comings and goings of ASX listed stocks in the small cap market.

As the first digital publication dedicated specifically to this space, Finfeed soon became the most trusted publication in the market, quickly garnering over two million page views – a number that continues to rise. provides its readers with informative articles that tackle the latest in market moving #ASX small cap news, plus exclusive content you won’t find anywhere else. It is aimed at those with an interest in investing, market education, company performance, start-ups and much more. is the only media organisation operating under the strength of a Financial Services License and is backed by leading journalists and analysts all with brands of their own.

The website aims to inform, educate and entertain with content that drills down into the heart of financial matters.

Finfeed is a leading source of investor and market information, with everything investors need to know about how to invest written in a way that anyone can understand. 

Over the years, the website has expanded beyond exclusively reporting on small caps, to profile Australia’s leading ASX listed small, mid and large caps as well as some of the country’s most successful CEOs and business leaders to find out what makes them tick.

Every day you will find fresh content covering:

Fast Facts

Over 4,000 articles published

Over 2.3 Million Page Views and counting

Over 10,000 followers on social media

Subscriber list growing by 2% monthly

Thanks for subscribing!