YPB to service TGA approved PT Combiphar
Product authentication and consumer engagement solutions provider YPB Group Limited (ASX:YPB) has signed a new three year Master Supply Agreement (MSA) with leading Indonesian pharmaceutical and wellness company PT Combiphar.
Combiphar has been an important YPB client since September 2016 and the leading user of YPB’s ProtectCodeTM product authentication solution, indicating that this is very much an endorsement of the group’s products and quality of service.
The new MSA allows for the extension of product coverage from the present to others in Combiphar’s 170 SKU product portfolio, potentially resulting in increased revenues from the client.
The new MSA anticipates broader product coverage and given the planned SKUs, volumes and pricing under the new MSA, YPB expects revenues over its three year life to be circa $1 million based on:
- continued application of ProtectCodesTMon Combiphar’s cough syrup;
- increased volumes from broader SKU coverage; and
- new YPB Connect SaaS platform and support fees.
YPB and Combiphar are presently developing plans for the rollout of coverage to further products, and management will inform the market when these are activated.
Explaining how this latest development fits with the company’s revitalised strategy, YPB Group chief executive John Houston said, “Our refreshed strategy has health products as a key vertical market of focus and we are delighted to extend and expand our close collaboration with Combiphar.
‘’We anticipate our solutions enhancing Combiphar’s engagement with greater numbers of its consumers by assuring the authenticity of a broader range of its products.”
Slower uptake, but gaining traction
YPB first informed the market of its relationship with Combiphar in September 2016
In an announcement to the ASX, the company said that it expected revenues of $1 million over the 3 year life of that agreement.
YPB noted today that only around half that revenue originally anticipated was achieved due to a slow initial take-up of the solution in the first 18 months, and only one product line has been covered so far.
However, it appears that the company is a much larger organisation today, and it also benefits from strong affiliations with multinational Pharma companies such as GlaxoSmithKline (GSK), Sanofi and Abbott.
Combiphar produces more than 170 product lines across the prescription and over-the-counter segments including OBH Combi cough syrup, Insto eye-care solution and JointFit gel-based relief for joints.
It also acts as a contract manufacturer for global pharm giants including GlaxoSmithKline (GSK), Sanofi and Abbott, and has obtained Therapeutic Goods Administration (TGA) certification to allow the export of certain products to Australia.