AfroCentric shielded from lockdown conditions


AfroCentric shielded from lockdown conditions

Published Date: 2020-04-06 | Source: Stephen Gunnion | Author: Stephen Gunnion

AfroCentric shielded from lockdown conditions

The healthcare group says there has been a spike in demand for some products, while Medscheme continues to process claims and assist members.

AfroCentric says it's well positioned to provide sustainable services for the duration of the Covid-19 lockdown and even grow its member base. Investors responded by pushing its shares as much as 15% higher on Friday.

The group, which owns Medscheme, medicines distributor Pharmacy Direct, drug manufacturer Activo and several other health related companies, said it had seen a big increase in demand for multivitamins from Active Health and for surgical masks, protective gear and ventilators from MMED. Pharmacy Direct, which continued to function with a full staff complement, was able to prepare chronic medication packs for the next couple of months after increasing inventory levels in February ahead of the March pharmaceutical price increases. Medical scheme services delivered by Medscheme continued as usual, including claims management, premium collections and member services. It said more than half its staff were able to work from home using its technology.

Group enterprises remained well capitalised, its liquidity was still strong and its client medical schemes had the required solvency ratios to sustain member claims and services through the present economic cycle. It said it didn't expect any inventory shortages for the next quarter.

Afrocentric's shares closed 12% higher at R3.30 on Friday.

Similar Stories