Pharmacy retailer to be sold for $40m

Australian Pharmaceutical Industries is set to sell its New Zealand-based Pharmacy Retailing business for $40 million.

API said yesterday PRNZ, an entity jointly owned by Pharmacy Retailing chief executive Peter Merton, would buy the business, which trades under the brands Healthcare Logistics and ProPharma.

API group leader Jeff Sher said the divestment of Pharmacy Retailing would allow the drug retailer to focus on its retail-led strategy in New Zealand.

API also plans to launch a new pharmacy model, known as Smart Pharmacy.

"The pharmacy industry in New Zealand is partially deregulated, and API is focused on implementing a retail strategy that reflects this deregulated environment," Sher said. "Two pilot Smart Pharmacy sites will open in early 2006."