Bioalpha is open to acquiring smaller pharmacy chains

Bangi, 11 Jun 2019,

Bioalpha Holdings Bhd, with net cash of RM20 million, is open to acquire smaller pharmacy chains to expand the presence of its Constant Pharmacy.

In an interview with the New Straits Times here today, Bioalpha managing director William Hon said it was in a good position to buy and expand its network of Constant Pharmacy if there was a strategic fit.

“Bioalpha’s gearing level is low, with net cash of RM20 million,” he said when met after Bioalpha’s shareholders’ meeting.

Bioalpha currently has 20 Constant Pharmacy outlets nationwide.

Hon is hopeful of adding 10 more by mid-2020 via organic growth or franchising.

All this while, Constant Pharmacy is established at residential neighbourhoods. By August, however, the group will open its first Constant Pharmacy in a shopping mall within the grocery space.

“We cannot identify our partner at this moment but what I can say is … by partnering this high-end grocery chain which has presence at shopping malls, we’ll be able to share turnover and inevitably lower our base rental,” he said.

On exports of health supplements, Hon said Bioalpha’s manufacturing division sought to boost exports to China, Indonesia and Thailand via appoinment of local distributors in those markets.

Bioalpha intends to go into the business-to-consumer distribution model, too.

“By the second half of this year, we’ll list our products on e-commerce platforms such as JD.com and Taobao.com for China market.”

Hon said the group’s herbal farming of Kacip Fatimah, Tongkat Ali, Misai Kucing and Roselle was progressing well at Desaru and Pasir Raja Herbal Parks.

“We’ve started to harvest soursop leaves, which are rich in anti-oxidant properties, as well as papaya leaves, which have been proven to help accelerate platelet count for dengue patients.

When asked on Bioalpha’s migration to the Main Board of Bursa Malaysia, Hon said his team had appointed an investment bank to prepare the documentation.

“We hope to submit our application to the Securities Commission for the transfer by the end of this year,” he added.