Pharmacy Daily | EBOS: Minimising impact from CWH loss

EBOS Group Limited says it has been working on plans to mitigate the loss of its massive $1.9 billion annual revenue PBS supply contract with Chemist Warehouse (PD yesterday), which will be taken over by Sigma Healthcare from 01 Jul.

In the wake of the decision, EBOS CEO John Cullity said "we have always recognised that the contract renewal was a risk to our business, and, therefore, we have been developing strategies to minimise the earnings impact from this potential outcome and create alternative opportunities for growth".

"We are confident in the growth strategies we have for both our healthcare and animal care sectors and in the overall diversity of the Group's earnings," he said.

Cullity noted multiple growth drivers across the EBOS Group, including expanding its pharmacy wholesale services to "numerous other branded and independent pharmacy customers".

"As a leading wholesaler we are positioned favourably with pharmacy customers and expect to be able to capitalise on the changed industry dynamics."

There is also the potential to continue to expand the TerryWhite Chemmart network, which now comprises about 550 stores and has grown by 150 outlets since 2019.

Cullity also noted possible further growth to EBOS' medical technology distribution business organically and inorganically, expansion of its medical consumables distribution business and continuing growth as a "leading wholesaler of medicines to hospitals including specialty drugs for treating of serious illnesses".

Contract Logistics and Animal Care are also growth drivers, while EBOS is exploring opportunities to expand its activities in Southeast Asia and are "reviewing our cost base to identify efficiencies in both our Community Pharmacy division and more broadly across the Group".