Australian Pharmaceutical Industries
Encyclopedia
Australian Pharmaceutical Industries (API) is a health and beauty company in Australia that is involved in pharmaceutical distribution, retailing and manufacturing. API is Australia’s largest wholesale distributor of pharmaceutical and allied products . The company is involved in retailing through company-owned stores and franchise operations. API is listed on the Australian Securities Exchange
and operates in the retail health and beauty industry under the following brands: Priceline
, Priceline Pharmacy, Soul Pattinson and Pharmacist Advice.
API acquired Newmans & Western Pharmaceuticals in 1996, and in the following year Amed Supplies Australia was acquired to increase its coverage in medical and surgical products for the hospital market.
API was listed on the Australian Stock Exchange on 16 June 1997.
Chemworld Chemist, a new retail pharmacy banner group, was launched in 1998. API acquired the pharmaceutical wholesaling and manufacturing operations of Washington H. Soul Pattinson in 2000.
On 29 October 2001, API purchased Hospital Supplies of Australia, the hospital and medical wholesale distribution business previously owned by the Victorian Healthcare Association. This enabled API to extend its distribution business to the public and private hospital market.
On 1 October 2002, API acquired the Interpacific and Interpharma businesses in New Zealand
. These companies operated pharmacy wholesaling and retailing to New Zealand, the manufacture of over the counter pharmaceuticals, and wholesale distribution of dental products. This acquisition included Zuellig Pharma Limited, PSM Healthcare Limited and Halas Dental Limited.
The retail brands of Priceline, Priceline Pharmacy, House and Price Attack were acquired on 6 October 2004 from the New Price Retail business. This propelled API to restructure its operations to focus primarily on growing its pharmaceutical distribution, retailing and manufacturing business. The retail led strategy was established by Jeff Sher, the architect of the Priceline Pharmacy model.
The next year API continued to narrow its focus to the pharmacy channel and sold the Halas Dental business.
In 2005, API formed a joint venture with ABN AMRO Capital Advisory Australia Pty Ltd. Later that year, the newly formed joint venture then acquired Clifford Hallam Pharmaceuticals Pty Limited.
API sold its New Zealand healthcare and logistics pharmacy business on 14 December 2005.
In 2007, API divested its House and Price Attack brands as part of its retail strategy to focus on Priceline.
. One of these workers, Andrew Cruickshank, a store layout planner, alleged Priceline fired him on his $101 000 a year contract, replacing him with someone on a $75 000 contract. Priceline claimed otherwise, "It was not the same role...the person wouldn't have been capable of doing the same things". The AIRC ruled in favour of Priceline and found that Cruickshank's termination resulted from Priceline's financial difficulties and the subsequent decision to reorganise its structure.
. Sigma made another bid in 2006, and discussions continued until 11 December 2006, when Sigma withdrew their bid.
Australian Securities Exchange
The Australian Securities Exchange was created by the merger of the Australian Stock Exchange and the Sydney Futures Exchange in July 2006. It is the primary stock exchange group in Australia....
and operates in the retail health and beauty industry under the following brands: Priceline
Priceline (Australia)
Priceline is a health and beauty retailer with stores in every state and territory in Australia. The Priceline brand has two store types; a traditional Priceline and Priceline Pharmacy. As of March 2010 there were over 330 Priceline branded stores throughout Australia...
, Priceline Pharmacy, Soul Pattinson and Pharmacist Advice.
History
Australian Pharmaceutical Industries was incorporated as Chemists’ Co-operative of New South Wales Limited in 1910 and later became known as Wholesale Drug Co before adopting its current name, Australian Pharmaceutical Industries, in 1971.API acquired Newmans & Western Pharmaceuticals in 1996, and in the following year Amed Supplies Australia was acquired to increase its coverage in medical and surgical products for the hospital market.
API was listed on the Australian Stock Exchange on 16 June 1997.
Chemworld Chemist, a new retail pharmacy banner group, was launched in 1998. API acquired the pharmaceutical wholesaling and manufacturing operations of Washington H. Soul Pattinson in 2000.
On 29 October 2001, API purchased Hospital Supplies of Australia, the hospital and medical wholesale distribution business previously owned by the Victorian Healthcare Association. This enabled API to extend its distribution business to the public and private hospital market.
On 1 October 2002, API acquired the Interpacific and Interpharma businesses in New Zealand
New Zealand
New Zealand is an island country in the south-western Pacific Ocean comprising two main landmasses and numerous smaller islands. The country is situated some east of Australia across the Tasman Sea, and roughly south of the Pacific island nations of New Caledonia, Fiji, and Tonga...
. These companies operated pharmacy wholesaling and retailing to New Zealand, the manufacture of over the counter pharmaceuticals, and wholesale distribution of dental products. This acquisition included Zuellig Pharma Limited, PSM Healthcare Limited and Halas Dental Limited.
The retail brands of Priceline, Priceline Pharmacy, House and Price Attack were acquired on 6 October 2004 from the New Price Retail business. This propelled API to restructure its operations to focus primarily on growing its pharmaceutical distribution, retailing and manufacturing business. The retail led strategy was established by Jeff Sher, the architect of the Priceline Pharmacy model.
The next year API continued to narrow its focus to the pharmacy channel and sold the Halas Dental business.
In 2005, API formed a joint venture with ABN AMRO Capital Advisory Australia Pty Ltd. Later that year, the newly formed joint venture then acquired Clifford Hallam Pharmaceuticals Pty Limited.
API sold its New Zealand healthcare and logistics pharmacy business on 14 December 2005.
In 2007, API divested its House and Price Attack brands as part of its retail strategy to focus on Priceline.
Accounting Discrepancies
In 2006 after the implementation of a new IT system, the company found $17.2 million of the company's declared profit had disappeared. Forensic Accountants called in could not find any trace of the money. API chose to write the full amount off their annual profit, causing a net loss of $17.2 million. The company's CEO Jeff Sher resigned after a strategic difference with the board in relation to the treatment of the accounting discrepancy which was proven to have historical significance predating the API acquisition of Priceline.WorkChoices
The Priceline division shed 32 workers for "operational reasons" under the new WorkChoices LegislationWorkChoices
The Workplace Relations Act 1996, as amended by the Workplace Relations Amendment Act 2005, popularly known as Work Choices, was a Legislative Act of the Australian Parliament that came into effect in March 2006 which involved many controversial amendments to the Workplace Relations Act 1996, the...
. One of these workers, Andrew Cruickshank, a store layout planner, alleged Priceline fired him on his $101 000 a year contract, replacing him with someone on a $75 000 contract. Priceline claimed otherwise, "It was not the same role...the person wouldn't have been capable of doing the same things". The AIRC ruled in favour of Priceline and found that Cruickshank's termination resulted from Priceline's financial difficulties and the subsequent decision to reorganise its structure.
Sigma Takeover
Rival company Sigma Pharmaceuticals had attempted to take over API in 2002, but had been blocked by the ACCCAustralian Competition and Consumer Commission
The Australian Competition and Consumer Commission is an independent authority of the Australia government. It was established in 1995 with the amalgamation of the Australian Trade Practices Commission and the Prices Surveillance Authority to administer the Trade Practices Act 1974...
. Sigma made another bid in 2006, and discussions continued until 11 December 2006, when Sigma withdrew their bid.