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Melbourne-based microbiome health company Biome Australia (ASX: BIO) has ramped up its trans-Tasman operations after striking a distribution deal with Green Cross Health (NZX: GXH) which operates New Zealand’s largest pharmacy network.
The agreement follows last week’s announcement that Biome is being distributed by Australia premium beauty retailer Mecca and the country’s largest health food network, Go Vita.
The New Zealand deal also comes on the heels of a distribution partnership with New Zealand pharmaceutical wholesaler Propharma, a subsidiary of EBOS Group (ASX: EBO), which is expected to boost Biome’s reach in community pharmacies across the country.
Under the latest New Zealand agreement, Biome’s activated probiotics will be launched into Green Cross Health’s Life Pharmacy and UniChem outlets from this month.
Green Cross has a pharmacy network of 328 outlets in New Zealand and processes about 40 per cent of the country's prescription volume.
Biome Australia produces and markets a range of live probiotics that help prevent and support the management of health concerns, including low mood and sleep, bone health and cholesterol.
While Australia is Biome’s primary market with a footprint of 6,000 pharmacy and practitioner distribution points, the company is also starting to make headway internationally, especially in the UK and Canada.
Biome says the New Zealand distribution agreement supports the group’s Vision 27 strategic framework which is targeting at least $75 million in cumulative revenue between FY25 and FY27.
The company last week posted record sales revenue of $18.4 million, up 41.6 per cent, in FY25 to deliver Biome’s first net profit after tax of $214,656.
"This partnership with Green Cross Health represents a significant strategic milestone in our international expansion program,” says Biome Australia managing director Blair Vega Norfolk.
“Their position as New Zealand's largest pharmacy network, combined with their integrated healthcare model and focus on professional clinical services, provides an ideal platform for introducing Activated Probiotics to New Zealand consumers and healthcare professionals.
“The partnership builds on our established wholesale infrastructure through Propharma, creating a comprehensive market entry solution that accelerates our Vision 27 objectives while maintaining our disciplined approach to international expansion.
“We expect this relationship to generate meaningful revenue contribution as we establish market presence and leverage Green Cross Health's extensive consumer touchpoints and clinical credibility."
Apart from pharmacy services, Green Cross Health operates 65 medical centres serving 416,500 enrolled patients, which Biome says creates “unique co-prescribing opportunities that align with Biome's Australian business model”.
Shares in Biome were trading 2c, or 4 per cent higher, at 53c at 10.35am (AEST).
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