Company Interview / Pharmx's one-stop-shop

Key Points

Pharmx launches Amazon-style ordering platform for pharmacies in Australia and New ZealandPlatform aims to drive efficiencies for suppliers, distributors, and banner groupsShift to transaction-based revenue model could lift Pharmx (ASX:PHX) financial resultsPharmx sees further growth opportunities in Southeast Asia and from industry consolidation

Pharmx has unveiled a new ordering platform aimed at transforming the pharmaceutical retail sector across Australia and New Zealand. Tom Culver likens the new platform to an “Amazon-style one stop shop”, allowing pharmacies to order from multiple suppliers in a single transaction. Culver highlights the challenge in creating such a seamless experience in the B2B space, especially given the various suppliers, points of ordering, and differing trading terms in the pharmacy sector. Pharmx already operates with 99% of pharmacies and all major CSO wholesalers in the region, placing it in a leading industry position.

Culver outlines that Pharmx, previously operating as Quorum Health, has grown from providing electronic data interchange (EDI) gateway services to processing $23 billion in annual trade while generating about $7.5 million in revenue. He sees the marketplace as an opportunity to shift Pharmx's business model to one focused on transaction volumes, which could significantly increase revenue, potentially by $20 million if just 5% of current trade flows through the platform.

Looking ahead, Culver states Pharmx operates in Australia and New Zealand but sees future international expansion, especially in markets with similar structures and regulations, such as Southeast Asia. He views ongoing industry consolidation as a growth opportunity for Pharmx.