A nationwide chemist chain is targeting Geelong pharmacists as part of its plan to go public and multiply.
Health Information Pharmacy has announced its intention to float on the Australian Stock Exchange next month under the banner Health Corporation Limited.
Health Corporation Limited chairman Graham Dunkley was in Geelong this week spruiking the franchise brand to local pharmacists and investors.
“On listing Health Corporation, the board’s intention is to accelerate earnings-per-share growth by funding passionate pharmacists into their own retail businesses,” Mr Dunkley said.
The company has two existing local pharmacy franchises, at Bell Park and Bell Post Hill.
Mr Dunkley said an initial offer of 12.5 million 60-cent shares would raise $7.5 million to fund an expansion of the company’s franchise network.
The company aimed to increase its portfolio of 25 pharmacies throughout Australia to 100 in the medium term.
“The Geelong area has proven to be a great location for the existing HIP pharmacies, growing at more than 10 per cent per annum,” Mr Dunkley said.
“We’re looking to expand in this area by adding another two to three pharmacies to the network.”
Mr Dunkley said the company had a finance arm to help young pharmacists obtain capital to set up HIP pharmacies.
“The average young pharmacist these days has to wait 10 to 12 years before they have enough equity to buy into a pharmacy,” he said.
“We’re making it possible, through our finance arm, to lengthen the effective economic life of these young pharmacists because we’re enabling them to get into their pharmacies earlier than they otherwise would.”
Mr Dunkley said a pharmacy would generally cost about $2 million to set up. Health Information Pharmacy franchises incurred $80,000 annual servicing fees.
“Then you’re looking at anywhere between $1.5 million and $4 million annual turnover with a growth potential of 10 per cent a year,” Mr Dunkley said.