Clicks Group Sells Unicorn Pharmaceuticals, Clears Path for New Licenses Amid Legal Resolution
Clicks Group Limited has announced plans to sell its entire stake in Unicorn Pharmaceuticals (Pty) Ltd. This decision follows a judgment by South Africa's Constitutional Court in March 2023. The judgment was in the case of the Independent Community Pharmacy Association vs. Clicks Group Ltd and others.
Constitutional Court Judgment
The Constitutional Court's ruling required Clicks Group to address its compliance issues. The matter was referred to the Director General of the Department of Health (DoH) to determine a sanction.
Background of the Case
- Case Name: Independent Community Pharmacy Association vs. Clicks Group Ltd and others
- Judgment Date: March 2023
- Referred To: Director General of the Department of Health
Engagement with the Department of Health
Clicks Group engaged constructively with the Director General and the DoH. As part of this process, Clicks proposed to divest its shareholding in Unicorn Pharmaceuticals.
Proposal Details
- Proposal Made By: Clicks Group
- Proposal: Divestment of total shareholding in Unicorn Pharmaceuticals
- Accepted By: Director General
- Acceptance Date: 27 June 2024
Clicks Group management is confident that the sale will be completed by the end of July 2024.
Impact on Clicks Group
The disposal of Unicorn Pharmaceuticals is expected to bring several positive outcomes for Clicks Group.
CEO’s Statement
Clicks Group CEO Bertina Engelbrecht welcomed the resolution of the legal process. She acknowledged the role of the Director General, the DoH, and their legal advisers. Engelbrecht emphasized their positive engagement in ensuring a sustainable solution for all stakeholders.
Implications for Pharmacy Licences
The DoH had advised Clicks Group in May 2023 that no new retail pharmacy licence applications could be processed. This hold would continue until the Director General was satisfied with Clicks Group’s compliance.
- Notification Date: May 2023
- Impact: Suspension of new retail pharmacy licence applications
“The completion of the Unicorn disposal will pave the way for the DoH to issue outstanding and new pharmacy licences,” said Engelbrecht. “This will support the continued growth and expansion of the Clicks pharmacy network in providing high-quality, affordable, and accessible healthcare to more South Africans.”
Conclusion
The decision to divest from Unicorn Pharmaceuticals marks a turning point for Clicks Group. It resolves a protracted legal issue and opens the door for future growth. With the sale expected to complete by the end of July 2024, Clicks Group is set to continue its expansion in the South African healthcare market.
