Chemist Warehouse plans groundbreaking expansion into hospital pharmacies with Icon Group founders
- Chemist Warehouse and two pharmacy magnates join forces
- The plan is to bring Chemist Warehouse to Aussie hospitals
Two pharmacy magnates team up with Chemist Warehouse in what has been labeled a ‘pioneering’ move to operate pharmacies in Australian hospitals.
Cathie Reid and Stuart Giles built heavyweight Icon Group in cancer care before selling it to private equity.
They’ve now joined forces with chain outlet Chemist Warehouse to get their pharmacies into hospitals in what they say has “the potential to be the biggest thing we’ve done yet.”
The joint venture named Chemist Warehouse Hospital Pharmacy allows the pair to work together Jack Gance and Mario Verrocchi, founders of Chemist Warehouse, want to break into the hospital pharmacy market together.
Australian chemist giant Chemist Warehouse (pictured) has joined forces with pharmaceutical-rich thrushes Cathie Reid and Stuart Giles to expand into hospital pharmacies
Cathie Reid and Stuart Giles (pictured together) founded cancer care heavyweight Icon Group before selling it to private equity and are together estimated to be worth $555 million
Chemist Warehouse has more than 500 stores across Australia with a turnover of more than $3 billion last year and dominates the pharmacy sector – but to date the company has failed to crack the more fragmented hospital pharmacy sector.
Ms Reid, who shares an estimated wealth of around $555 million with Mr Giles, told The Australian Financial Review that the pair want to break into the Australian market before expanding overseas.
“We’re starting in Australia, but we’re not just limiting ourselves to Australia,” Ms Reid said.
‘Chemist Warehouse has stores abroad. Looking at Chemist Warehouse’s track record, they don’t go into anything with the intention of being passive about it. They’re busy being category killers.’
The duo made their fortune with the Epic Pharmacy chain and Icon Group. They sold all of their shares in Icon, but retain a minority stake in Epic.
Brett Clark, a managing partner at Chemist Warehouse and a friend of the pair, helped broker the meeting between the powerhouses.
The joint venture named Chemist Warehouse Hospital Pharmacy sees the pair team up with Chemist Warehouse founders Jack Gance and Mario Verrocchi as they aim to break into the hospital pharmacy market together (stock image)
Ms Reid, who shares an estimated net worth of around $555 million with Mr Giles, said they want to enter the Australian market before expanding abroad (stock image)
The partnership comes two decades after Ms Reid and Mr Giles sold the majority of their pharmacies in Queensland and Victoria to the chemist giant.
A spokesperson for Chemist Warehouse said the partnership would allow the company to expand its business.
“The joint venture will create employment opportunities for pharmacists and pharmacy assistants and enable our highly sought after trainee program in the hospital pharmacy environment,” said the spokesperson.