PharmAust to manufacture for supermarkets

Nedlands-based pharmaceutical company PharmAust Ltd has signed manufacturing contracts with grocery chains IGA and New Zealand's Progressive Enterprises to produce a range of sun care and over-the-counter cough and cold products.

PharmAust's manufacturing arm will produce cough medicine and chest rub for IGA, to be sold as a part of its generic, high-volume Black & Gold brand. The company has signed an exclusive, on-going contract to manufacture both products, to be sold in over 1000 IGA supermarkets Australia-wide.

For Woolworth's subsidiary Progressive Enterprises, PharmAust has signed a one year roll-over contract to manufacture the entire sunscreen range for its premium generic brand - Signature Range.

The nine manufactured products will be sold through Woolworths, Foodtown and Countdown supermarket chains, representing 45 per cent of the country's grocery market.

The agreement, which commenced in August 2006, will roll over on a yearly basis depending on retention of service delivery standards. The contract has a forecast value to PharmAust of $230,000 per annum.

Last week the company signed a 12-month contract with WA's Ganehill Pty Ltd to produce two new products in the Megan Gale Invisible Zinc Sun Care range.