Focus Dynamics, LKL International propose lifestyle-based pharmacies chain joint-venture
KUALA LUMPUR (May 4): Focus Dynamics Group Bhd and LKL International Bhd have teamed up to initiate the rollout of a chain of lifestyle-based pharmacies in the Klang Valley, and eventually nationwide.
In a joint-statement, the two companies said they will set up a dedicated vehicle to house the new business, with Focus Dynamics taking a majority stake of 60% and LKL the remaining 40%.
They said Focus Dynamics' wholly-owned subsidiary Focus Medicare Sdn Bhd (FMSB) has signed a heads of agreement on this matter with LKL. The agreement will be finalised with commercial terms and investment quantums within three months.
Focus Dynamics, a lifestyle and technology-based group with exposures in food and beverages, property, and nutritional food, emerged as substantial shareholder of LKL in March, after acquiring a 29.92% stake in the medical beds and peripherals manufacturer.
The statement said Focus Dynamics intends to bring a new vision to the local pharmacy industry, together with LKL, by incorporating various aspects of its technological and digital concepts into what is traditionally an over-the-counter business.
“In addition to the normal supply of prescription and over-the-counter drugs, the pharmacies will stock nutritional supplements, non-GMO [genetically modified organism] dried goods and specialised nutritional food bundles in ready to eat meals under the Focus brand, to provide a one-stop wellness retail point to health-conscious consumers,” the companies said.
They said the pharmacies will be backed by an internally-designed platform which allows for e-prescription, efufillment and delivery of orders to customers' doorsteps.
“There is the growing realisation, that as individuals, we have to begin to look after ourselves more on a routine basis. This means more interest from consumers into home medical testing devices, nutritional supplements and other healthcare products. The marked shift in perception of preventive consumption in terms of well-being and health has been accelerated by the onset of Covid-19,” they added.
Statistics show that in 2019, the local dietary, vitamins and nutritional supplements market breached RM3 billion, with its figures growing double digit year-on-year, the companies noted.
“With the embracing of e-commerce as the new norm, sales and demand is expected to boom,” they said.
Focus Dynamics shares price closed one sen or 8.7% lower at 10.5 sen today, giving the company a market capitalisation of RM668 million. The stock was the day’s most actively traded on Bursa Malaysia, with 707.99 million shares exchanging hands.
LKL was also active with 148.31 million shares traded. The counter closed down one sen or 2.6% at 37.5 sen, valuing the company at RM193 million.