PHARMACY groups, Pharmacy Alliance and Pharmacy Platform, are set to merge to "protect and grow the interests" of independent pharmacies, as large corporations look to enter the sector.
The Platform Alliance Group (PAG) will unite close to 1,200 stores, with a turnover in sales of $2 billion, to deliver the scale and capability to adapt quickly to changes in the community pharmacy market, Pharmacy Platform Director, Steve Kastrinakis, said.
"Coming together was clear to me - we are stronger together and our purpose is simple, we want a strong future for independent pharmacies across Australia," he said.
"The pandemic saw community pharmacy both adapt to, and change, at a rate never seen before.
"We need to be equally as agile and innovative in the way in which we choose to support our members going forward.
"This merger will arm us with the scale and capability to do so."
Kastrinakis said the deal, which comes 18 months after the Advantage Group merged with Instigo (PD 30 Sep 2020) to create Pharmacy Platform, would improve the overall member experience.
"Independent pharmacies are able and positioned to respond to community health needs faster, and in a more personal manner, and we aim to continue to support them with doing so," he said.
"The pandemic has demonstrated the value of community pharmacy, with a shift in the market share away from franchises towards independent pharmacies.
"However, this has also made the industry more attractive to large corporations, like Wesfarmers and Woolworths.
"We know independent pharmacists want local solutions for their respective communities and seek tailored and personal support to meet their owner-oriented goals."
The group's CEO, David Fenlon (formerly Blackmores Australia New Zealand Managing Director), said PAG will deliver improved offers and models designed to increase supplier return on investment.
Fenlon said the Pharmacy Alliance and Pharmacy Platform brands will continue to operate independently for the foreseeable future.
The Board of the new entity includes Arrotex CEO, Dennis Bastas, former Pharmacy Platform Director, Michael Flannery, and Pharmacy Alliance Managing Director, Simon Reynolds, alongside Kastrinakis and Fenlon.
The above article was sent to subscribers in Pharmacy Daily's issue from 08 Mar 22
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