Wellnex shares rise on Pharmacy Own launch under CH2 deal
Health & Biotech
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The launch of Pharmacy Own and supply agreement with CH2 will provide consumers with equivalent products to major brands currently found in the Australian market at competitive prices.
Health and wellness company Wellnex Life (ASX: WNX) has launched its wholly owned Pharmacy Own brand and entered a supply deal with Australia’s only fully integrated pharmaceutical and medical consumable distributor Clifford Hallam Healthcare (CH2).
Under the deal, CH2 will provide exclusive distribution of the Pharmacy Own brand to its extensive national distribution network, which services more than 2500 pharmacies.
CH2 distributes pharmaceuticals, medical consumables, and nutritional and equipment products servicing the healthcare market. It has a portfolio of around 50,000 products from more than 700 recognised suppliers, operating across business units such as hospitals, pharmacies, aged care, primary care, and contract logistics.
Under the terms of the agreement, Wellnex will be responsible for the development, Therapeutic Goods Administration (TGA) marketing authorisations and consumer marketing for a range of products supplied under the Pharmacy Own brand.
Wellnex’s Brand Solutions Australia (BSA) national field sales team will be responsible for the Pharmacy Own brand sales and distribution in the pharmacy channel, along with training of healthcare professionals to create awareness and maximise sales.
Wellnex and CH2 will initially develop a strong offer of over-the-counter (OTC) products that will provide consumers with equivalent products to major brands currently found in the Australian market.
Under the supply agreement, up to 20 core products will be launched in the first 12 months. Long term, the Pharmacy Own brand will expand to more than 50 products across major pharmaceutical categories, including cough and cold, hay fever, pain relief and vitamins.
The first available products are scheduled for launch in the first half of 2022, with the range enabling consumers and pharmacies to benefit from competitive retail prices and strong retail margins.
2021 has been an impressive year for Wellnex, with the CH2 deal and launch of its Pharmacy Own brand building on the company’s business model of delivering wellness brands that help meet consumer demand.
Wellnex acquired leading health products company Brand Solutions Australia (BSA)
and reported a big jump in revenue for the start of the new financial year. The company now expects budgeted FY22 revenues to exceed $21 million, up from the FY21 result of $18.3 million.
The company also struck a strategic joint venture with ASX-listed Australian Dairy Nationals Group (ASX: AHF) to launch Australia’s first organic A2 protein infant formula range using 100% Australian milk.
In September, it was announced Supermarket giant Coles will stock two Wellnex-owned brands, Wakey Wakey and The Iron Company.
Wakey Wakey produces a new range of energy-booster gummy bears, while The Iron Company is behind slow-release iron-booster and vitamin C gummies – the first products of their kind in Australia.
Wellnex Life CEO George Karafotias said the supply agreement will enable Wellnex to gain significant national distribution across CH2’s network for the Pharmacy Own brand.
“We’re thrilled to be partnering with CH2 to make available our Pharmacy Own brand of products to pharmacies all over Australia,” he said.
“With CH2 having one of the largest distribution networks in the Australian healthcare industry, we are excited about the potential to leverage their market reach and position, and increase revenue and profitability,” he said.
CH2’s Tony Cetrola said the supply agreement with Wellnex Life represents an exciting partnership for CH2.
“We’re pleased to be able to partner with a company that’s able to innovate new products that will meet the needs of our large Australian network,” Mr Cetrola said.
The Wellnex share price was up 2.2% on today’s announcement to $0.093.