Chemist Warehouse Plans Revolutionary Expansion Into Hospital Pharmacies With Icon Group Founders
- Chemist Warehouse and two drugstore moguls join forces
- The plan is to bring Chemist Warehouse to Australian hospitals
Two pharmacy moguls have teamed up with Chemist Warehouse in what’s being called a “game-changing” move to operate pharmacies located inside Australian hospitals..
Cathie Reid and Stuart Giles built Icon Group, a cancer care heavyweight, before selling it to private equity.
Now they have joined forces with the Chemist Warehouse chain to bring their pharmacies to hospitals in what they say “has the potential to be the biggest thing we’ve done yet.”
The joint venture called Chemist Warehouse Hospital Pharmacy has the couple working together Chemist Warehouse founders Jack Gance and Mario Verrocchi as together they aim to enter the hospital pharmacy market.
Australian chemical giant Chemist Warehouse (pictured) has joined forces with pharma-list rich Cathie Reid and Stuart Giles in its bid to expand its operations into hospital pharmacy outlets.
Cathie Reid and Stuart Giles (pictured together) built Icon Group, the cancer care heavyweight, before selling it to private equity and have an estimated combined value of $555 million.
Chemist Warehouse has over 500 stores across Australia with sales in excess of $3bn last year, dominating the pharmaceutical sector, but to date the business has not broken through the more fragmented hospital pharmaceutical sector.
Ms Reid, who along with Mr Giles share an estimated wealth of around $555 million, told The Australian Financial Review that the couple want to break into the Australian market before expanding overseas.
“We started in Australia, but we didn’t just limit ourselves to Australia,” said Ms Reid.
‘Chemist Warehouse has stores abroad. Looking at the history of Chemist Warehouse, they don’t go into anything in order to be passive. They are in the business of being category killers.
The duo made their fortunes with the Epic Pharmacy chain and Icon Group. They have sold all of their shares in Icon but have kept a minority stake in Epic.
Brett Clark, a managing partner at Chemist Warehouse and a friend of the couple, helped broker the meeting between the powerhouses.
The joint venture dubbed Chemist Warehouse Hospital Pharmacy has the pair working alongside Chemist Warehouse founders Jack Gance and Mario Verrocchi as together they aim to break into the hospital pharmacy market (file image)
Ms Reid, who along with Mr Giles share an estimated wealth of around $555m, said they want to break into the Australian market before expanding overseas (file image)
The partnership comes two decades after Ms Reid and Mr Giles sold most of their pharmacies in Queensland and Victoria to the chemical giant.
A Chemist Warehouse spokesman said the collaboration would allow the company to expand its operations.
“The joint venture will create employment opportunities for pharmacists and pharmacy assistants, and allow our highly sought-after apprentice program to operate in the hospital pharmacy environment,” the spokesperson said.