South African chain of pharmacies Clicks to sell medication manufacturer following injunction

In accordance with a court decision, South African pharmacy chain Clicks Group (CLSJ.J), opens new tab, announced on Monday that it will sell pharmaceuticals manufacturer Unicorn Pharmaceuticals. This move will allow the health ministry to grant the firm licenses for new locations.

The Independent Community Pharmacy Association (ICPA) claimed that Clicks’ ownership of Unicorn had broken rules that forbid pharmacies from owning medicine manufacturers, and the South African Constitutional Court upheld their claim in March 2023.

It is anticipated that Unicorn will be disposed of by the end of this month, which will enable Clicks to secure fresh pharmacy licenses. In May 2023, the health ministry said that it would no longer be accepting new Clicks pharmacy licenses and would only start again if the business had cooperated with the court order.

“As part of a constructive engagement process with the director general, Clicks Group proposed to regularize its position by divesting of its total shareholding in the manufacturing pharmacy, Unicorn Pharmaceuticals,” the company stated.

At the end of February, the midpoint of its fiscal year, the pharmacy and health and beauty retailer, whose brands include Clicks, Clicks Baby, The Body Shop, Sorbet, and UPD, had 902 stores and 718 pharmacies.