(Reuters) - South African pharmacy chain Clicks Group said on Monday it would sell drug maker Unicorn Pharmaceuticals to comply with a court ruling, clearing the way for the health ministry to issue the company with licences for new stores.
South Africa's Constitutional Court in March 2023 ruled in favour of the Independent Community Pharmacy Association (ICPA), which argued that Clicks' ownership of Unicorn had violated regulations that prohibit pharmacies from owning drugmakers.
The disposal of Unicorn, expected to be completed by the end of this month, would allow Clicks to obtain new pharmacy licences. The health ministry had stopped processing new Clicks pharmacy licences in May 2023, and said it would only resume when the company had complied with the court ruling.
"As part of a constructive engagement process with the director general, Clicks Group proposed to regularise its position by divesting of its total shareholding in the manufacturing pharmacy, Unicorn Pharmaceuticals," Clicks said.
The pharmacy, health and beauty retailer, whose brands include Clicks, Clicks Baby, The Body Shop, Sorbet and UPD had 902 stores and 718 pharmacies at the end of February, the mid-point of its financial year.
(Reporting by Nelson Banya; editing by Miral Fahmy)