AUSTRALIAN Pharmaceutical Industries (API) owner Wesfarmers is looking to further expand its interests in the pharmacy space, with the company in talks to acquire online prescription business InstantScripts, according to the Australian Financial Review (AFR).
InstantScripts was founded in 2018, and offers a range of services including telehealth consultations, medical certificates and the ability to request prescriptions for around 300 medicines.
The company's website notes it is a service run by "Australian registered doctors to streamline the provision of routine schedule 4 prescriptions to patients in need".
"Patients are able to access these prescriptions online after completing a short digital consultation...our doctors review this consultation and, if appropriate, a prescription is provided," the site notes.
Online scripts and medical certificates can be requested for a $19 fee, while the platform also offers online pathology and specialist referrals for $20.
Approved prescriptions are sent via QR code to a patient's mobile device and email, and "can be taken to any pharmacy for dispensing".
Sources cited by the AFR said the strategic rationale for Wesfarmers pursuing the deal was to drive traffic to its network of API pharmacies across the country.
InstantScripts began soliciting possible offers back in Oct, and was in "advanced talks" with Wesfarmers as recently as early this month, the report says.
Preliminary financial data revealed as part of the process reported that InstantScripts' annual revenue was around $50 million, with 250,000 active users across the country and links to 2,500 pharmacies, with a proposed valuation of around $200 million.
Wesfarmers paid $764 million for API, including the Priceline Pharmacy brand, last year (PD 31 Mar 2022) after a brief battle with Woolworths, while more recently the conglomerate's health division also made a $169 million indicative offer for ASX-listed SILK Laser Australia (PD 20 Apr).
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