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Mediclinic News : AFROCENTRIC QUIETLY BUILDS MEDICINE CHEST

Title

AFROCENTRIC QUIETLY BUILDS MEDICINE CHEST

Date

2019-03-15

Link

News Description

BUSINESS DAY It’s not an obvious association, but Afrocentric, the listed BEE healthcare investment company that owns Medscheme, has quietly become the biggest dispenser of medicines by script volumes in the country. Through a deal with the department of health in 2018, the company’s pharmacy courier unit Pharmacy Direct now dispenses more than 1-million scripts a month in KwaZulu-Natal for chronic medicines to public collection points. At the same time, it has leapt feet-first into drug manufacturing with the deal to buy the 74 percent it did not own in Activo Health, a SA-based generics pharmaceutical manufacturing company that makes ARVs and over-the-counter products under the Plusssz range, among others. While manufacturing generics is not an obviously high-profit business, Afrocentric’s CFO Hannes Boonzaaier argues that in the health “value chain”, manufacturers are “still making good money”. But the company’s increasing reach in all aspects of the healthcare business has yet to truly materialise in its earnings. For the six months ended December, fully diluted headline earnings per share were only 2.4 percent better, at 22.18c. It was slightly more generous with the dividend, raising that 6.25 percent, to 17c a share. Admittedly, the results don’t include Activo, for which Afrocentric paid R588-million, as the deal was only signed off on March 1. While its empire building in the healthcare sector may pay off, for investors this share are likely to require patience.
Created at 2019/03/18 02:15 PM by Mediclinic
Last modified at 2019/03/18 02:15 PM by Mediclinic