Wellnex has just signed a groundbreaking deal with leading national retailer,
Chemist Warehouse (CW).
Wellnex Life will launch five new medicinal cannabis products with CW as it looks to gain a strong foothold in the burgeoning sector. Under the deal, CW will receive 10% equity in a joint venture alongside OneLife Botanicals.
The first of the five products is set to be delivered by the end of FY23. WNX will also distribute the products to additional pharmacy channels that will complement the extensive CW network.
Wellnex CEO George Karafotias said the Chemist Warehouse deal has given Wellnex the confidence that it is on the right track with its business plans.
“This is such a pivotal relationship for Wellnex,” Karafotias told
Stockhead.
“Companies as large as Chemist Warehouse do not enter into relationships unless they can see something innovative or unique that will bring a significant return.”
According to Karafotias, the partnership also gives Wellnex the credibility in the market that makes other participants take notice
“Further, to partner with Chemist Warehouse in the medical cannabis space is a great achievement, as it will gives us the best chance to take a great slice of this growing market, such is the reach of the largest pharmaceutical retailer.”
Karafotias said that Wellnex is now potentially looking to enter into other relationships to take advantage of the unique product and brand offering that it’s currently building.
The company is carefully going through the process of putting things in place to be one of the first to enter the over-the-counter (OTC) medicinal cannabis market under the Schedule 3 (S3) classification.
Wellnex expects the S3 market – which removes the prescription requirement hurdle for consumers – to be significantly larger than the SAS-B market, representing a significant opportunity for the company.
“This is not a race as you need to ensure you cover all aspects to obtain the required approval,” explained Karafotias.
“The cost and time taken to obtain this approval is considerable, and you want to make sure you get it right the first time.”
“We have assembled an experience team that will help us navigate through this process,” said Karafotias.