Empowered Pharmaceutical distributor launched

Business Report - 05 April 2005
By Neesa Moodley

Durban – A new player has arrived on Durban’s Pharmaceutical scene in the form of Icembe Medical, a joint venture between Smith & Nephew and Corez Investments.

Icembe Medical, which was launched on Friday, is 70% black owned. It is the first investment venture by Corez investments which is owned by Sbu Mhlambi and Queen Thandi Zulu.

Corez Investments is 100% black owned and is a healthcare consultancy for the state and private sectors.

Icembe Medical's initial business will be the marketing, sales and distribution of medical products to state hospitals. There are plans to extend the company’s activities to include private hospitals and the export market.

Mhlambi said: “We have ventured into the healthcare industry first, since we have experience and know it well. However, there will definitely be ventures into other industries later.”

The initial focus would be on products for advanced wound care management, estimated to bring in business worth R50 million. “Of course, that figure will depend on the company winning tenders and pulling sales over 18 months.”

Mhlambi said while Icembe Medical focused on the supply chain management of medical devices, Corez Investments was already looking at a second venture to focus on services in terms of health risk management and absenteeism management.

Icembe Medical's majority shareholder is Corez Investments, with 60 percent. Smith & Nephew has 30 percent and 10 percent is reserved for the Icembe Medical Employees Trust.

Mhlambi said: “Since the health industry does not have a charter yet, we have used the codes of practice as provided by the department of trade and industry as a guide.

“The company has started small with less than 10 staff members to keep overheads low, but we aim to have a staff of 10 to 15 by the mid-year.”

Icembe Medical would initially operate in KwaZulu-Natal and Gauteng, which Mhlambi said already accounted for more than 60 percent of the market. The company plans to expand beyond beyond the two provinces within a year.

Icembe Medical has supplier agreements with Smith & Nephew and BSN Medical. “However, even though we are in a joint venture with Smith & Nephew, we plan to increase our base of suppliers and possibly to expand into our own brands some day.”