NuClicks multipronged strategy and long talks with
April 14, 2003
By Vera von Lieres
Cape Town - New Clicks Holdings (NuClicks) has been moving strongly into pharmacy retailing for about four years and has been involved in talks with the government on the issue since early 2000.
Up to now, legislation has not allowed nonpharmacists, including corporates, to own pharmacies but this could change soon with the promulgation of two linked sets of legislation: the Medicines and Related Substances Control Act and the Pharmacy Act.
Other than NuClicks, food retailers Pick 'n Pay and Shoprite have made moves into pharmacy retailing but these have been more low key, based on a looser franchising model compared with the multipronged strategy NuClicks has chosen. Scepticism by some in the market about the strategy - focused on a perceived lack of transparency and questions about when the investment will pay off - has in part been reflected in the share price
.
The key elements of the retailer's move into pharmacy are:
The acquisition of a 56 percent stake in Link Investment Trust, which has 250 Link pharmacies countrywide;
The association formed about two years ago with pharmacy chain Purchase Milton & Associates, which has 76 Link and LinkMax pharmacies; and
The acquisition last year of United Pharmaceutical Retailers, which is a wholesale distributor of pharmaceutical products to the pharmaceutical and medical sectors.- Vera von Lieres
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