The Warehouse group has acquired Zoom Pharmacy. Photo / Jason Oxenham
The Warehouse is expanding into the drug market, taking a 26% stake in pill distribution startup Zoom Health.
Zoom is an online pharmacy business that can dispense prescriptions to customers’ homes rather than going to a pharmacy. Last year, the company raised $ 3 million through crowdfunding platform Snowball.
Records from the Companies Office show that The Warehouse is now Zoom’s second largest shareholder, behind founder David Taylor who owns 32%.
Taylor said Zoom Health has proven to be disruptive for an industry that has seen little to no innovation for many years.
He had developed and refined the Zoom offer to deliver people’s pharmaceutical prescriptions directly to them without having to go to the pharmacist.
Zoom Health was launched in 2018. Taylor said it was software-driven, with drug delivery and patient support being the central driving force of the business.
Warehouse general manager Nick Grayston said pharmacy service was crucial for the Kiwis, especially now when it was difficult to go outside to collect prescription drugs, but instead they can be delivered to a patient’s door via contactless delivery.
“We are aware of some of the challenges associated with drug use in New Zealand and we want to play a role in improving patient outcomes through this partnership.”
The Warehouse Group has worked to build a customer ecosystem that leverages the strength of its brand, store network and customer base, he added.
Grayston said the investment in Zoom Health complements The Warehouse’s existing online retail and distribution offering.
Warehouse Group shares are trading today at $ 3.80 and the company has a market cap of $ 1.3 billion.
Zoom Health’s associated company, Zoom Pharmacy, is a consumer-oriented pharmacy service designed to address the high levels of drug non-adherence in New Zealand, especially for the many Kiwis with limited access to healthcare services. primary.
The pharmacy has DHB funding agreements that cover over 3.8 million New Zealanders and is one of the largest independent pharmacies operating in the country.
Taylor said that The Warehouse’s investment will allow the company to expand the use of Zoom Pharmacy’s services to many more Kiwis.
He said The Warehouse and Zoom have a common vision to help improve access to affordable health care.
“We know that around half a million New Zealanders are currently not registered with a general practitioner. Many more Kiwis can be registered but have limited access to general practitioner and traditional pharmacy services. The reality is. that healthcare has failed for many New Zealanders for years.
“Our new partnership with The Warehouse will give us the opportunity to bring an advanced and affordable healthcare solution to potentially millions more Kiwis,” Taylor said.
Taylor said the additional funding will be used to improve distribution infrastructure, software development and other investments in people.