HEALTHCARE company Wellnex Life Ltd's Q2 FY24 Quarterly Report saw cash receipts totalling $2.85m, with notable impacts stemming from delays in IP licensing orders due to extended approval timelines from the TGA.
The development underscored the company's ability to adapt to regulatory challenges while maintaining operational resilience.
A company statement said a highlight of the quarter was the successful acquisition of over-the-counter pharmacy product Pain Away, a move that seems to have injected immediate scale into Wellnex's operations.
The acquisition of the Pain Away range bolstered the company's financial performance, with initial sales in Jan showing net margins exceeding 50% across all retailers and wholesalers, explained a company statement.
Brand sales were up 460% compared to the prior corresponding period of $1.52m and IP licensing sales of $1.26m with net margins increasing to 38% compared to an average of 17% in FY23.
There was also completion of the transformative acquisition of Pain Away after a successful $13.6m Entitlement Offer and $3.5m Follow-on Placement.
CEO George Karafotias expressed enthusiasm, stating, "the acquisition of Pain Away marks a significant milestone for Wellnex, positioning us as a key player in the consumer healthcare market".
Furthermore, the appointment of three seasoned directors to the board, including CWH's Mario Tascone as Non-Executive Chair, Andrew Vidler and Jeffrey Yeh as Non-Executive Directors, supports the company's commitment to improving corporate governance and driving profitability.
Karafotias remarked, "we are thrilled to welcome these experienced professionals to our board, bringing invaluable expertise that will propel Wellnex towards sustained growth and success".
The company had available funding at the end of the quarter of approximately $3.7m. JG
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