23 May 2012

Pharmacybrands eyes other healthcare targets

7:19 am on 23 May 2012

Pharmacybrands plans to expand to other parts of the healthcare industry after its acquisition of the Radius Pharmacy and Medical businesses nearly doubled profits to $10 million.

The company's share price surged 13% to 86 cents on Tuesday after it announced profits had nearly doubled for the 12 months to March.

The listed company, which operates five different retail pharmacy chains and eight medical centres, says revenues also surged by 450%, from $19 million the previous year, to more than $105 million.

Pharmacybrands chief executive Alan Wham says the acquisition of Radius Pharmacy and Medical businesses was the main contributor to the profit.

"The Radius Pharmacy acquisition effectively double the number of pharmacies in which we have an equity interest," he says.

It also operates the Amcal, Care Chemist, LifePharmacy and Unichem retail chains and five medical centres and Mr Wham says the company's keen to expand its existing businesses and branch into other parts of the healthcare industry.

A recent Government announcement that it will raise prescription charges will not affect its profits.

The company has declared a dividend of 3.5 cents per share.