The Wesfarmers Ltd (ASX: WES) share price is up around 0.5% after the company announced a deal to buy InstantScripts for around $135 million.
InstantScripts is described as one of Australia’s leading telehealth businesses.
Wesfarmers expands the healthcare division
InstantScripts is a business that helps “hundreds of thousands” of Australians access health and medical services from their home.
On the portal, Aussies can access prescriptions for everyday medications, speak to a doctor, obtain medical certificates, get blood test requests and more. It provides access for prescriptions for over 300 medications and it works with over 2,500 pharmacies across Australia.
Wesfarmers Health Managing Director, Emily Amos said that this business was complementary to the existing health portfolio, and that the acquisition would “provide opportunities to leverage its existing pharmacy and Clear Skincare networks.” Amos said:
Over recent years telehealth has emerged as an important service, complementing the care delivered through GP practices, pharmacies and other allied health providers.
Our goal is to make Australians’ health, beauty and wellness experiences simpler, more affordable and easier to access. InstantScripts provides flexible services that are available at short notice and outside of normal consultation hours, and is accessible to patients in remote areas and those who have difficulty visiting a GP.
Wesfarmers Health plans to invest in the continuing growth of InstantScripts and the expansion of digital health services for patients.
The InstantScripts clinical governance framework is well structured and we welcome the opportunity to apply Wesfarmers Health’s expertise and relationships to further strengthen and improve clinical outcomes for our patients.
Final thoughts on the Wesfarmers share price
The company’s healthcare division is still small compared to other segments of the company, like Bunnings and Kmart. I like the direction the company is taking, with a long-term outlook focus. While this won’t move the needle much for the company, I believe it’s a good move by the business.
When we combine this with other moves such as the expansion into lithium with Mt Holland, and Bunnings’ ongoing success, Wesfarmers is a great business that I’d want to own in my portfolio.
