Australian Pharmaceutical Industries, a wholly-owned subsidiary of ASX-listed conglomerate Wesfarmers, is buying local telehealth business InstantScripts for A$135 million ($91 million).
Founded in 2018, the online health clinic offers a range of digital services, including telehealth consultations, online prescriptions, medical certificates, blood test requests, health management plans and specialist referrals. It also operates InstantCosmetics, which provides prescribing services and offers injectable products to cosmetic clinics. To date, it has around one million registered user accounts and over 2,500 pharmacy partners.
WHY IT MATTERS
Based on a press statement, InstantScripts will become part of the Wesfarmers Health Division, which has increased its focus on digital health since it was formed in March last year.
The company is being valued for its flexibility in providing services – being able to deliver at short notice and outside normal consultation hours, as well as being accessible to patients who have difficulty visiting a GP.
Its acquisition is also seen to provide opportunities for Wesfarmers to grow its existing pharmacy and Clear Skincare networks.
MARKET SNAPSHOT
Australian companies have pounced on the growing telehealth market, which was forecasted to grow to $3 billion in value by the end of the decade from about $730 million last year. Receiving healthcare via telehealth has become the norm, even beyond the global pandemic that had pushed its popularity in recent years.
Early last year, online health booking platform 1st Group merged with Visionflex, a telehealth solutions provider, to offer an “integrated telehealth system for clinicians.”
Meanwhile, Doctor Care Anywhere Group, which bought GP2U Telehealth in 2021 following its foray into the Australian digital health market, is offloading the telehealth business and selling it to My Emergency Doctor to focus on its core UK market.
ON THE RECORD
“Over recent years telehealth has emerged as an important service, complementing the care delivered through GP practices, pharmacies and other allied health providers. Our goal is to make Australians’ health, beauty and wellness experiences simpler, more affordable, and easier to access,” noted Wesfarmers Health managing director Emily Amos.