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Highlights
- EBOS Group reports growth despite industry challenges.
- Cann Group sees production gains, but financial pressures persist.
- Atomo Diagnostics tackles rising syphilis cases with innovative testing.
EBOS Group (ASX:EBO), a major player in the pharmaceutical sector, continues to demonstrate resilience despite significant changes in the industry. As Sigma Healthcare and Chemist Warehouse explore a merger, which could create Australia’s largest chemist group, EBOS remains focused on strengthening its position in the market. CEO John Cullity, during EBOS's recent AGM in Auckland, highlighted a solid performance, with underlying earnings increasing by 7.5% for the September quarter.
EBOS, which owns Terry White Chemmart, one of Australia's largest pharmacy networks, and the Symbion drug distribution arm, reported annual revenues of NZ$13 billion, up 7.8%. The company’s Australian operations contributed NZ$7.8 billion, with gross operating revenue growing by 8.7%. Cullity acknowledged the impact of recent regulatory changes, such as the federal government's decision to allow pharmacists to dispense 60-day supplies of prescription medicine. However, EBOS has largely offset these challenges with increased government funding through the Community Service Obligation scheme, which ensures access to essential medicines.
Looking ahead, EBOS is targeting an additional $300 million in pharmacy revenues, while also implementing cost-saving initiatives expected to deliver NZ$25 million to NZ$50 million over the next two years.
Cann Group Pursues Growth Amid Financial Challenges
Cann Group (ASX:CAN), an early entrant into the medical cannabis space, continues to face mixed fortunes. While the company reported a year-on-year decline in quarterly receipts, dropping by 36%, production growth remains a positive trend. Cann's Mildura facility produced one tonne of cannabis in the most recent quarter, a significant increase from previous periods.
Cann’s production is expected to reach 5.5 tonnes for the current year, with the company targeting annual output of 10 tonnes in the future. Despite the production gains, Cann is still navigating financial challenges, reporting net cash outflows of $3.55 million. The company is currently undertaking a rights raising, seeking $6.75 million to support its operations.
Atomo Diagnostics Addresses Rising Syphilis Cases
Atomo Diagnostics (ASX:AT1) is addressing the alarming resurgence of syphilis in Australia. With the disease seeing a significant increase in diagnoses, the company is developing a rapid test for both professional use and at-home testing. Atomo has secured a $2.44 million grant from the federal government to support this initiative.
The syphilis rapid test combines Atomo’s testing hardware with a syphilis antibody assay developed in collaboration with the Burnet Institute. This solution will be the first of its kind to differentiate between active infections and previously treated cases, addressing a crucial unmet need in the market.
Atomo’s success with its HIV home-use test, currently available in the UK, demonstrates the company’s capability to deliver innovative diagnostics that can have a global impact.
