FOCUS Dynamics Group Bhd has struck a partnership with LKL International Bhd to incorporate various aspects of its technological and digital concepts into what is traditionally an over-the-counter local pharmacy industry.
In addition to the normal supply of prescription and over-the-counter drugs, pharmacies will in the future be able to 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 pharmacies will be backed by an internally designed platform which allows for e-prescription, e-fufillment and delivery of orders to customers’ doorsteps,” Focus Dynamics and LKL pointed out in a joint statement.
“There is the growing realisation that as individuals, we have to begin looking after ourselves more on a routine basis. This means growing interest from consumers on home medical testing devices, nutritional supplements and other healthcare products.”
Earlier, Focus Medicare Sdn Bhd, a wholly-owned subsidiary of Focus Dynamics has signed a heads of agreement to partner with LKL to initiate the roll-out of a chain of lifestyle-based pharmacies throughout the Klang Valley and eventually nationwide.
The companies will set up a dedicated vehicle to house this new business with Focus Dynamics taking a majority stake of 60% and LKL making up the remaining 40%.
The agreement will be finalised with commercial terms and investment quantum within three months.
According to both partners, the marked shift in perception of preventive consumption in terms of well-being and health has been accelerated by the COVID-19 onslaught.
Statistics show that in 2019, the local dietary, vitamins and nutritional supplements market breached RM3 bil with sales figures growing double digit year-on-year.
“With the embracing of e-commerce as the new norm, sales and demand is expected to boom,” projected Focus Dynamic and LKL.
Focus Dynamics recently invested into LKL by acquiring a substantial stake in the latter earlier this year as part of its long term strategy to be a mainstay in the medical consumables industry.
At the close of today’s trading, Focus Dynamic was down 1 sen or 8.7% to 10.5 sen with 707.99 million shares traded, thus valuing the company at RM669 mil.
Meanwhile, LKL was down 1 sen or 2.6% to 37.5 sen with 148.31 million shares exchanged hands, hence giving it a market capitalisation of RM193 mil. – May 4, 2021