Customer-focused healthcare company Wellnex Life (ASX: WNX) has announced that it has added Australian pharmaceutical giant Chemist Warehouse to its SAS-B medicinal cannabis joint venture (JV) with OneLife Botanicals, and will be launching five new products throughout Chemist Warehouse’s extensive network. 

The first of these products are expected to be launched before the end of FY23 into the burgeoning estimated $423 million Australian medicinal cannabis market that grew 84% in 2022. Chemist Warehouse will receive 10% equity in the JV, with a new jointly owned and developed brand being utilised for the launch. This rollout coincides with WNX’s continued progress of the over-the-counter Schedule 3 (S3) registration. Wellnex is aiming to be one of the first companies to launch a registered medicinal cannabis product under the S3 classification.

Chemist Warehouse is part of the My Chemist Group, which employs over 17,000 people across over 500 locations and is Australia’s largest pharmaceutical retailer. Their long standing relationship with Wellnex is well known to the market, as the two companies have collaborated many times before, with WNX rolling out brands such as Ocean Road Dairies and Performance Inspired through the pharmacy chain.

Notably, Wellnex is already in a JV with Chemist Warehouse for the Wagner Liquigesic brand – Australia’s first paracetamol liquid soft gel. In a further alignment of interests, Chemist Warehouse is also a shareholder directly in Wellnex Life.

A string of recent strategic partnerships and encouraging revenue growth has put Wellnex in a strong position.

After raising almost $6 million in equity late last year, $3 million of which came from Homart Pharmaceuticals, the company released their 1H FY23 results that showed $13.2 million in revenue (+54% on the prior corresponding period) and reaffirmed guidance of $29 million total revenue for FY23.

This agreement marks another exciting progression into medicinal cannabis for Wellnex. The global cannabidiol (CBD) market was worth US$12.8 billion in 2021, and is forecast to grow at a compound annual growth rate (CAGR) of 21.7% from 2022-28 to reach US$56.2 billion.

Importantly, this new JV’s distribution capabilities are not exclusive to Chemist Warehouse. Wellnex already has distribution channels in place that cover over 90% of the health and wellness market in Australia. This includes Coles, Woolworths, Chemist Warehouse, Priceline, CH2, Symbion, Sigma and Amcal+. The company will be distributing the medicinal cannabis products through additional pharmacy channels in addition to Chemist Warehouse to further expand distribution.

To complement the launch of the new products, the JV has reached an exclusive agreement with OnTracka, an esteemed and long-term participant in the medical cannabis industry.

OnTracka revolutionises the way patients can receive healthcare and have access to clinical research programs from their mobile phones. Using their deep industry expertise and data, OnTracka will develop a new telehealth application that will connect patients with authorised prescribers and relevant cannabis products, to ensure a seamless process for prescription and management for patients. 

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