EBOS says its new distribution deal with Chemist Warehouse (PD 02 Jul) is estimated to generate about $1 billion in sales revenue for the wholesaler in the first year of operations.
At yesterday's EBOS annual general meeting, the company's CEO John Cullity noted EBOS' successful tender to act as the exclusive third party distributor of pharmaceutical products to more than 400 Chemist Warehouse and My Chemist stores in Australia for five years.
EBOS will take over the distribution from Sigma on 01 Jul 2019, with Cullity also highlighting a potential three year contract extension which would see the pact continue until 2027.
The EBOS CEO also cited last month's acquisition of Warner & Webster, a medical and surgical supplies wholesaler with operations in Vic and SA.
Cullity said Warner & Webster focuses on servicing GP clinics and aged care facilities "and is an excellent addition to our EBOS Healthcare business in Australia".
MEANWHILE during his speech Cullity also confirmed EBOS' support for the Community Service Obligation's role in distribution of PBS medicines.
"We are firmly of the view that the wholesale model serves the community exceptionally well, delivering medicines when and where required, but the model today is under threat from the issues of exclusive direct distribution and the current government funding not adequately addressing falling PBS prices."
Cullity said he was encouraged by engagement with Health Minister Greg Hunt, but "we do require successful resolution of these issues for the benefit of all stakeholders including, most importantly, the population who are dependent on timely and full access to medicines".
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