Medu Capital takes up a 40% equity stake in Medipost Courier Pharmacy

Medipost was established in 1991 as the first courier pharmacy in South Africa, with a focus on the distribution of chronic medication to patients nationally. Medipost currently processes an average of 140,000 prescriptions per month, making it the largest courier pharmacy in South Africa. Kawari was established in 2004 as a pharmaceutical wholesaler which supplies medicines to various retail and courier pharmacies nationally.

Medu Capital is an established private equity business with R1.5 billion of funds and assets under management. Medu Capital has a track record of partnering and adding value to the growth strategies of medium size businesses operating in all sectors of the economy. Medu Capital invests between R30 million and R175 million for the medium to long term.

In 2004, the Department of Health introduced medicine pricing regulations, intended to make medicine more affordable to the public. The regulatory changes enabled Medipost to modify their strategy to focus on a “total chronic solution” for medical schemes and their members. Medipost’s ability to adapt to changes in the environment resulted in Medipost’s client base increasing substantially. Medipost supplies medication to members that belong to 94 of the 110 registered medical schemes in South Africa.

Ernest January, Director of Medu Capital says, “We are delighted to conclude the investment in Medipost. Medu Capital will appoint two representatives to the board of directors, enabling us to be strategically positioned to add value to business of Medipost.”

Karen van Wyk, CEO of Medipost says,”The courier pharmacy business plays a vital role in the healthcare industry in support of medical scheme rules, specialised chronic processes, effective service delivery and patient convenience. Although this area of business has grown immensely over the past 15 years in South Africa, the need for walk-in pharmacies to supply clinical support in functions such as blood pressure monitoring as well as acute medication, will always remain.”

In response to the question of why Medu Capital invested in Medipost, January says: “Medipost is the largest courier pharmacy that distributes chronic medication on a national basis. Medipost employs more than 400 employees, 80 of which are qualified pharmacists and 112 pharmacist’s assistants and utilises the most advanced and unique courier pharmacy IT system in South Africa.”

Karen van Wyk adds, “We are proud of our track record. Medipost is the sole provider of chronic medication to the Government Employees Medical Scheme (GEMS). Medipost also provides services to blue chip schemes such as Telemed, Keyhealth, Momentum Health, Prime Cure and Polmed. Apart from the usual chronic medication Medipost also has a specialised HIV department that provides Anti-Retroviral (ARV) treatment and appropriate counselling to patients. The ability to deliver medication nationally together with a high level of quality service makes Medipost the courier pharmacy of choice for medical schemes and their members.”

Van Wyk concludes, “aside from the enhanced BEE credentials, the Medu Capital investment will strengthen our position as the leading courier pharmacy in South Africa by enhancing Medipost’s corporate governance. This is as a result of the strict investment selection criteria applied by Medu Capital and their focus on corporate governance.”

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Medu Capital takes up a 40% equity stake in Medipost Courier Pharmacy

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