Australian Pharmaceutical Industries Limited (API) is a health and beauty company in Australia that is involved in

pharmaceutical A medication (also called medicament, medicine, pharmaceutical drug, medicinal drug or simply drug) is a drug used to diagnose, cure, treat, or prevent disease. Drug therapy (pharmacotherapy) is an important part of the medical field and re ...

distribution, retailing and manufacturing. API is Australia's largest wholesale distributor of pharmaceutical and allied products. The company is involved in retailing through company-owned stores and franchise operations. API operates in the retail health and beauty industry under the following brands:

Priceline Priceline may refer to: *Priceline.com, a commercial website which helps users obtain discount rates for travel-related items such as airline tickets and hotel stays *The Priceline Group, a provider of online travel & related services, and a parent ...

, Priceline Pharmacy, Soul Pattinson and Pharmacist Advice. API was acquired by

Wesfarmers Wesfarmers Limited is an Australian conglomerate, headquartered in Perth, Western Australia. It has interests predominantly in Australia and New Zealand, operating in retail, chemical, fertiliser, industrial and safety products. With revenue o ...

for A$774 million in March 2022.

History

Australian Pharmaceutical Industries was incorporated as Chemists' Co-operative of New South Wales Limited in 1910 and later became known as Wholesale Drug Co before adopting its current name, Australian Pharmaceutical Industries, in 1971."Company Profile: API"
InvestSMART."Company Profile: API"
. CareerOne. API acquired Newmans & Western Pharmaceuticals in 1996, and in the following year Amed Supplies Australia was acquired to increase its coverage in medical and surgical products for the hospital market. API was listed on the

Australian Securities Exchange Australian Securities Exchange Ltd or ASX, is an Australian public company that operates Australia's primary securities exchange, the Australian Securities Exchange (sometimes referred to outside of Australia as, or confused within Australia as ...

on 16 June 1997. Chemworld Chemist, a new retail pharmacy banner group, was launched in 1998. API acquired the pharmaceutical wholesaling and manufacturing operations of

Washington H Soul Pattinson Washington H Soul Pattinson trading as Soul Pattison, is a publicly listed Australian investment company. History In 1872, Caleb Soul and his son Washington Handley opened a pharmacy store in Pitt Street, Sydney. In 1886, Lewy Pattinson opened ...

in 2000. On 29 October 2001, API purchased Hospital Supplies of Australia, the hospital and medical wholesale distribution business previously owned by the Victorian Healthcare Association. This enabled API to extend its distribution business to the public and private hospital market. On 1 October 2002, API acquired the Interpacific and Interpharma businesses in

New Zealand New Zealand ( mi, Aotearoa ) is an island country in the southwestern Pacific Ocean. It consists of two main landmasses—the North Island () and the South Island ()—and over 700 smaller islands. It is the sixth-largest island count ...

. These companies operated pharmacy wholesaling and retailing in New Zealand, the manufacture of over the counter pharmaceuticals, and wholesale distribution of dental products. This acquisition included Zuellig Pharma, PSM Healthcare and Halas Dental. The retail brands of Priceline, Priceline Pharmacy, House and Price Attack were acquired on 6 October 2004 from the New Price Retail business. This propelled API to restructure its operations to focus primarily on growing its pharmaceutical distribution, retailing and manufacturing business. The retail led strategy was established by Jeff Sher, the architect of the Priceline Pharmacy model. The next year, API continued to narrow its focus to the pharmacy channel and sold the Halas Dental business. In 2005, API formed a joint venture with

ABN AMRO ABN or abn may refer to: Companies * ABN AMRO Group, a Dutch bank group * ABN AMRO, sometimes referred to as "ABN" in shorthand, is a Dutch state-owned bank * Algemene Bank Nederland, a now-defunct Dutch bank Radio, news and television organizat ...

Capital Advisory Australia. Later that year, the newly formed joint venture then acquired Clifford Hallam Pharmaceuticals Pty Limited. API sold its New Zealand healthcare and logistics pharmacy business on 14 December 2005. In 2007, API divested its House and Price Attack brands as part of its retail strategy to focus on Priceline.

Senior management

The directors of API are as follows:"Australian Pharmaceutical Industries Limited 2009 Annual Report"
. Australian Pharmaceutical Industries.

Controversies

Accounting discrepancies

In 2006 after the implementation of a new IT system, the company found $17.2 million of the company's declared profit had disappeared. Forensic Accountants called in could not find any trace of the money. API chose to write the full amount off their annual profit, causing a net loss of $17.2 million. The company's CEO Jeff Sher resigned after a strategic difference with the board in relation to the treatment of the accounting discrepancy which was proven to have historical significance predating the API acquisition of Priceline.

WorkChoices

The Priceline division shed 32 workers for "operational reasons" under the new WorkChoices Legislation. One of these workers, Andrew Cruickshank, a store layout planner, alleged Priceline fired him on his $101,000 a year contract, replacing him with someone on a $75 000 contract. Priceline claimed otherwise, "It was not the same role...the person wouldn't have been capable of doing the same things".Schubert, Misha
"Priceline case puts focus on IR laws"
''The Age'', 25 April 2007. The

Australian Industrial Relations Commission The Australian Industrial Relations Commission (AIRC), known from 1956 to 1973 as the Commonwealth Conciliation and Arbitration Commission and from 1973 to 1988 as the Australian Conciliation and Arbitration Commission, was a tribunal with powers ...

ruled in favour of Priceline and found that Cruickshank's termination resulted from Priceline's financial difficulties and the subsequent decision to reorganise its structure.Godfrey, Kelly & Moulton, Adam
"Employees fail in operational reasons termination claims"
, ''Human Resources Leader'', 15 May 2007.

Sigma takeover

Rival company

Sigma Pharmaceuticals Sigma Healthcare Limited is an Australian, ASX-listed company SX:SIG with a focus on the pharmacy industry. In addition to its wholesale and distribution arms, Sigma Healthcare also owns Australian retail pharmacy brands: Amcal and Discount Dr ...

had attempted to take over API in 2002, but had been blocked by the

Australian Competition & Consumer Commission The Australian Competition and Consumer Commission (ACCC) is the chief competition regulator of the Government of Australia, located within the Department of the Treasury. It was established in 1995 with the amalgamation of the Australian Tra ...

. Sigma made another bid in 2006, and discussions continued until 11 December 2006, when Sigma withdrew its bid.Qantas, banks lift market
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