API acquisition on track

WESFARMERS’ bid to acquire pharmacy wholesaler, Australian Pharmaceutical Industries (API), is on track to be completed by the end of Mar, API Chair, Ken Gunderson-Briggs, told shareholders.

Addressing API’s annual general meeting (AGM) yesterday, Gunderson-Briggs said the company was working closely with the Western Australian retail conglomerate to finalise the $1.55 per share deal, which is subject to a determination from the Australian Competition and Consumer Commission.

While the Wesfarmers deal is on track, API CEO, Richard Vincent, noted the emergence of the Omicron variant of COVID-19 has adversely impacted the company’s distribution and Priceline Pharmacy franchise businesses, with more than one-in-five workers being forced to isolate due to the virus.

“In the lead up to Christmas, following the lifting of state-based restrictions, our Priceline Pharmacy and non-pharmacy stores sales were improving week-on-week,” he said.

“Omicron has changed this picture, with consumers voluntarily choosing to restrict their shopping to essential needs and visits.

“Frustratingly, foot traffic, particularly in the major shopping centres has fallen since, and like most retailers, our stores... have been challenged by the absence of staff, unavailable due to the pandemic and isolation requirements.”

Despite workforce shortages, Vincent said the company’s teams have worked “tirelessly” to “ensure no Australian community has been denied timely access to vital medicines and healthcare services”.

He added that API remains on track to open “a minimum of 20 new Priceline Pharmacy stores in the 2022 financial year”.

MEANWHILE, API shareholders elected former Pharmacy Guild of Australia National President, George Tambassis, as a Director.

Tambassis was appointed to the API Board as a Non-Executive Director last year (PD 07 Jun 2021).