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Future of Clicks’ pharmacy manufacturing division uncertain after ConCourt ruling
Clicks accused of having a conflict of interest because it both produces and sells its own medicine.
Image: mountedgecombeplaza.co.za
Clicks may be forced to sell its pharmacy manufacturing leg or will need to shut it down after the Constitutional Court ruled against the retailer for contravening the Pharmacy Act.
Clicks was hauled to court by the Independent Community Pharmacy Association (ICPA), which represents independently owned community pharmacies. It accused Clicks of having a conflict of interest because it both produces and sells medicine.
In a media statement, the association accused Clicks of simultaneously holding ownership or a beneficial interest in both a community pharmacy and a manufacturing pharmacy.
The ICPA argued this could lead to Clicks pharmacies prioritising their own medication.
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The association said that this was in direct contravention of the Pharmacy Act.
“Allowing pharmacies to control their own manufacturers can be dangerous because it creates a conflict of interest. If a pharmacist works for a company that owns a manufacturing entity, they may be tempted to set high prices for their products and prioritise promoting them in their pharmacies, even if there are better or cheaper alternatives available.
“This could result in customers not getting the best quality products at the best prices, and unnecessary products may be recommended and sold.
“Additionally, the manufacturing pharmacy may give preference to pharmacies that are part of the same group, which could limit the availability of products to customers who go to independent pharmacies,” the ICPA said.
Over 600 pharmacies
Currently, Clicks owns more than 600 pharmacies as well as the manufacturing pharmacy, Unicorn Pharmaceuticals.
It has a network of over 840 stores and its pharmacies are supported by a strong digital presence.
On 28 March 2023, the Constitutional Court ruled in favour of the ICPA’s argument. It ruled that Clicks was in contravention of section 22A of the Pharmacy Act read with Regulation 6 (d) of the Ownership Regulations.
ICPA said that it will now be investigating its options in respect of the sanctions that the Director General of Health may impose on Clicks.
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