Australian health and wellness business Wellnex Life (ASX: WNX) aims to build a notable presence in the over-the-counter pharmaceutical space with the launch of its wholly-owned Pharmacy Own brand of health and wellness products.

The launch is marked by the delivery of the first Pharmacy Own branded products to joint venture partner Clifford Hallam Healthcare (CH2) – Australia’s only fully integrated pharmaceutical and medical consumable distributor with a portfolio of over 50,000 products from over 700 recognised suppliers servicing over 2,500 domestic pharmacy stores.

“Partnering with CH2 on this launch will see Pharmacy Own products distributed across a large and established distribution network that will maximise sales for Wellnex,” CEO George Karafotias said.

Amidst the fast-rising cost of living in Australia, Wellnex Life believes consumers will tend to reach for products that are easier on the pocket.

“Wellnex is excited to bring to market another innovative brand in Pharmacy Own that will meet the growing demand for affordable over-the-counter medicines.,” Mr Karafotias said. 

Australia’s revenue forecast from over-the-counter pharmaceuticals in 2023 is expected to reach US$3.34 billion with the largest segment being vitamins and minerals with a market volume of US$1.17 billion. Overall, the market is expected to grow at a 5.02% compounded annual growth rate to US$4.06 billion by 2027.

According to the company, the joint venture will allow Wellnex to gain immediate national distribution across CH2’s extensive network, with Wellnex retaining 100% ownership of the Pharmacy Own brand.

CH2 will be the exclusive distributor of Pharmacy Own’s 20 core products targeted for launch over the first 12 months. In the longer term, Wellnex Life intends to expand the line to more than 50 products across major categories such as cough and cold, hay fever, pain relief and vitamins.

Source: Wellnex Life

Gathering momentum in the medicinal cannabis market

Australia’s medicinal cannabis industry is gearing up to roll out its offerings after the Therapeutic Goods Administration (TGA), in December 2020, greenlit the distribution and sale of low dose cannabidiol (CBD) products under a Schedule 3 (S3) classification.

Wellnex Life is in the process of obtaining TGA approvals for its own medicinal cannabis product under the (S3) classification which will, for the first time, allow Australians to purchase CBD products over the counter and without a prescription in any pharmacy across Australia.

According to recent studies, the legal use of medicinal cannabis has risen with potentially more than 100,000 patients in 2022 while the products like CBD oil are becoming more affordable – signs that potentially indicate that the consumer side of the market is ready and willing.

Wellnex Life has a joint venture with medicinal cannabis manufacturer OneLife Botanicals to enter Australia’s Special Access Scheme (SAS) market in which certain practitioners can issue prescriptions for therapeutic goods such as medicinal cannabis.

Though relatively restricted, the SAS market was forecast to grow to more than $400 million in 2022 from $230 million in 2021 and $95 million in the previous year.

During Q2 FY23, Wellnex Life raised a total of $5.96 million which included an oversubscribed Share Purchase Plan and a significant investment from Homart Pharmaceuticals. The capital is to be used to accelerate Wellnex Life’s medicinal cannabis strategy and to fund various other brand launches.

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