Wellnex shares take flight on epic GlaxoSmithKline deal

The latest cracking deal is with a division of global health care giant GlaxoSmithKline.

Diversified health & wellness company Wellnex Life (ASX:WNX) continues to execute on its distribution strategy with another marquee agreement this morning.

Its newest supply deal is with GlaxoSmithKline Consumer Trading Services, a subsidiary of the eponymous US$80bn global health care giant

The agreement will see Wellnex Life license and supply its innovative paracetamol soft gel liquid analgesic product to GSK.

The products will be sold and distributed under the GSK Consumer Healthcare’s pain relief brand in Australia and New Zealand.

Investors responded positively to the announcement, with WNX shares leading the market in early morning trade with a gain of around 20%.

Strong momentum

WNX’s deal with GlaxoSmithKline marks another step forward for its market-leading distribution strategy, which also includes a core strategic partnership with Chemist Warehouse, Australia’s largest pharmacy chain.

The company has also secured Australia/New Zealand distribution rights for Mark Wahlberg and Tom Dowd’s sport and supplements brand Performance Inspired, and recently landed a distribution deal with grocery giants Coles and Woolworths for the launch of two new gummy-based health products.

In that context, GlaxoSmithKline marks the latest globally significant brand to sell and distribute WNX products.

Other well-known products in the GSK stable include Panadol, Sensodyne, Voltaren, Polident, Centrum, Otrivin and Advil.

For Wellnex CEO George Karafotias, the GSK deal marks further validation of the company’s strategic acquisition of Brand Solutions Australia, which specialises in developing products and brands in the multi-billion-dollar health & wellness sector.

“Brand Solutions Australia has been working with GSK Consumer Healthcare for over 12 months to secure this agreement, and was one of the compelling reasons for the initial acquisition of BSA,” Karafotias said.

The term of the Agreement is for a minimum of three years, and Wellnex Life will also be responsible for the manufacture of the products for GSK.

“We’re pleased to be able to partner with leading companies to get products on shelves, and are excited to work with GSK Consumer Healthcare,” Wellnex director Zack 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.