EBOS welcomes finalisation of 7th CPA

16 June 2020 NZX/ASX Code: EBO EBOS welcomes finalisation of 7th Community Pharmacy Agreement EBOS Group Limited ("EBOS") is pleased to announce that a mutually beneficial outcome with the Federal Government has been achieved following the recent execution of the 7th Community Pharmacy Agreement ("CPA" or the "Agreement"). EBOS, through its market leading national healthcare wholesaler and wholly-owned subsidiary Symbion, together with members of the National Pharmaceutical Services Association (NPSA), has been actively engaged in negotiations with the Department of Health and Federal Minister for Health, The Honourable Greg Hunt MP, with respect to a successful outcome for the 7th CPA. EBOS Group Chief Executive Officer John Cullity said the Agreement provided the long term certainty the company and other NPSA members need to ensure all Australians have timely access to all important medicines wherever they live. The NPSA members are part of the national network of Community Service Obligation (CSO) wholesale distributors that support the delivery of medicines to all Australians through our community pharmacy partners. "In announcing the Agreement the Minister for Health has recognised the importance of the wholesale model in supporting community pharmacies in providing equitable and timely access to medicines for all Australians, particularly those living outside our major cities", he said. "We operate in a highly competitive and regulated market and our position throughout these negotiations was that in order for Symbion to maintain its service standards then support through a sustainable wholesale remuneration model was necessary. "We are therefore pleased that, through this Agreement, the Government has recognised both the vital role of retail pharmacy in meeting the community's health needs as well as the critical role all CSO wholesalers play in ensuring the timely distribution of medicines across Australia". The new arrangements provide CSO wholesale distributors with an additional $92 million investment into the CSO funding pool, and introduction of a restructured wholesale mark-up for PBS medicines, to continue to support medicine supply through the wholesaler network over the next five years. Mr Cullity also praised the Department of Health and Minister Hunt for their positive engagement during negotiations and for acknowledging the role Symbion plays as part of Australia's critical infrastructure. "The recent devastating bushfires and the ongoing COVID-19 pandemic have highlighted the critical role we play in ensuring Australians can continue to access critical medicines, particularly in rural areas, even under the most extraordinary and difficult circumstances," he said. "Importantly, these crises have highlighted the value of the strong and collaborative relationship we have developed with the Minister and the Department, which has seen us work together pro-actively to ensure the CSO model continues to deliver equitable access to medicines for all Australians." Authorised for lodgement with NZX and ASX by: John Cullity Chief Executive Officer EBOS Group Limited For further information, please contact: Investor Relations: Martin Krauskopf General Manager, M&A and Investor Relations EBOS Group Limited +61 402 026 060 Media: New Zealand Geoff Senescall Senescall Akers +64 21 481 234 Australia James Aanensen PRX +61 410 518 590 About EBOS Group EBOS Group Limited is the largest and most diversified Australasian marketer, wholesaler and distributor of healthcare, medical and pharmaceutical products. It is also a leading marketer and distributor of recognised consumer products and animal care brands. End CA:00354757 For:EBO Type:GENERAL Time:2020-06-16 13:07:22