Wellnex ready for dual UK listing in new year after record November sales

Wellnex reports strongest November on record with sales of $3.16 million as it looks towards dual listing on LSE in January 2025
Company growing its vast range of brands from medicinal cannabis to pain relief and vitamins
Wellnex looks to expand offering globally and is in talks with a major distributor for UK market

Special Report: As Wellnex Life targets a dual listing on the London Stock Exchange (LSE) early in the new year, the company has reported its strongest November on record with sales of $3.16 million.

Health and wellness company Wellnex Life (ASX:WNX) says 2024 has been a transformational year for the company as it looks towards listing on the LSE in early January.

The company reported sales in November increased to $3.16 million – up 321% on pcp – with growth coming across the whole business.

Wellnex at a glance

Wellnex has been steadily moving to a position of strength, having secured ranging and distribution agreements with major Australian retailers including Chemist Warehouse, Woolworths, Coles and CH2.

The company owns a range of pharmaceutical, vitamin and wellness brands including:

Nighty Night
Wakey Wakey
The Iron Company
Bright
Liquigesic
Pharmacy Own
Pain Away

“We’ve spent a lot of time and money launching new brands like Wakey Wakey and Nighty Night,” managing director Zack Bozinovski said.

“New brands don’t become $20 million brands overnight and we need to keep investing to create awareness and continue sales momentum.”

Expansion into medicinal cannabis

Wellnex partnered with Chemist Warehouse to launch the medicinal cannabis range Wellnex Life in August, catering for the growing TGA special access scheme (SAS).

Bozinovski said Chemist Warehouse’s Instant Consult platform launched in October with more than 100 scripts for medicinal cannabis in the last couple of weeks of that month.

“The good news is more authorised doctors are going to be recruited on the Instant Consult platform, which means more patient consultations and eventually more cannabis prescriptions,” he said.

Wellnex’s newly appointed non-executive chair George Tambassis – who served as a director on the Pharmacy Guild of Australia for 15 years including seven years as national president – said medicinal cannabis presented a major growth opportunity.

“Medicinal cannabis is a huge area in Australia under the SAS with specific GPs or doctors qualified to prescribe this medicine,” he said.

“We’re going to expand with other prescribers as well as it’s a huge growth market.”

Well-known and new brands

Wellnex purchased the well-established Pain Away in 2023, which it describes as the largest Australian-owned topical pain relief brand.

“Brands like Pain Away are well-known, trusted brands and there is a lot of upside,” Bozinovski said.

The company’s MD added that while there were learnings and hurdles to overcome with the Pain Away acquisition, Wellnex was now positioned to increase its distribution and strengthen its revenue.

“We’ve got a really good grasp now of the business.

“It is a mature brand with 25 years in the marketplace and the team are working very diligently to continue to expand its reach.

“The product continues to sell out to customers and that is the true barometer.”

Haleon manufacturing strengthens

Wellnex also has a contract manufacturing product agreement with Haleon, which owns brands including Panadol, Sensodyne, Voltaren, Polident, Centrum, Otrivin and Advil.

Back in March 2022, the company inked a supply agreement for its TGA-registered soft gel liquid paracetamol analgesic to Haleon (then GSK Consumer Healthcare) for it to be retailed in Australia and New Zealand under Panadol.

The deal was extended and in August Wellnex announced it had received its first purchase order from Haleon for its soft gel liquid paracetamol analgesics for the UK.

“We’re working through additional products and opportunities in and additional countries to launch our soft gel range of products,” Bozinovski said.

Listing in UK for growth

Wellnex has also set its sights on global expansion with plans for a dual listing on the LSE in early January to attract further institutional and retail investment.

“We’re very confident about the UK listing moving forward, which would support a strong balance sheet to support our brand investment,” Tambassis said.

Ruari McGirr, Director at Orana Capital – the broker leading the charge for their dual listing – has touted Wellnex as a “mini blue-chip”.

“Often smaller cap companies generally have a plan and great aspiration for the future but limited track record or existing market position. What we see is the complete opposite –established partnerships with blue-chips, an array of well regarded products, and a track record of consistent sales growth over a number of years”.

The company is also in talks with a major distributor for the UK market.

“We know the UK market well, and it should be a good opportunity for the company,” Bozinovski said.

This article was developed in collaboration with Wellnex Life, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.