About UPD

UPD, which belongs to Clicks Group Limited, is not just the country’s largest full-line pharmaceutical wholesaler, supplying retail pharmacies, private hospitals, dispensing doctors and retail health stores.

The organisation also offers a comprehensive selection of third party distribution services, and complements its wholesaling and distribution activities with a range of support services that substantially empower its healthcare clients. Evolving in line with the demands and requirements of its increasingly diverse client-base, UPD has come a long way since its origination in 1993. April 1993 was a momentous month in South African history. Politically, the newly formed Tripartite Alliance met to make a final decision regarding a date for the country’s first truly democratic elections, it was also the month in which UPD was formed.

This came about as the result of the merger of PDC Trading (the pharmaceutical wholesaling business of The Premier Group) and Medical Cash & Carry (Pty) Ltd. During the 1999 unbundling of the Premier Group, UPD was sold to a consortium of Standard Corporate Merchant Bank, Gensec and executive management, heralding the genesis of UPD. UPD’s first involvement in third party distribution took place in 1999, when it entered into a sole distribution arrangement with one of its wholesale clients, as an extension of existing services.

“Efficient procurement and distribution is key to our strategy and, by bringing UPD on board, we go a long way to achieving this.”

Recognising the potential value of UPD as an integral part of its healthcare strategy, Clicks Group Limited made a bid for the company in July 2002. The acquisition was approved by the competition authorities and, effective January 2003, UPD joined Clicks Retail Stores, Clicks Pharmacy, The Body Shop, Discom, Musica and Style Studio as a member of Clicks Group Limited. ‘Our objective is to improve efficiencies and margin in retail pharmacy and ultimately to assist in providing affordable and accessible healthcare to all South Africans,’ said Trevor Honneysett, who was group leader of Clicks Group Limited at the time of the acquisition. ‘Efficient procurement and distribution is key to our strategy and, by bringing UPD on board, we go a long way to achieving this.’

Since then, UPD has consistently been amongst the group’s top performers. Its high-volume, low-margin model has delivered positive results for the company and the group. Current developments, driven by a dynamic and motivated team, indicate that the company remains well positioned for continued profit growth.

‘Our growth is driven by our ability to compete on service, while our profitability is driven by our ability to contain costs at the same time,’ says Lynda van Niekerk (MD). ‘To date we continue to deliver profit margins comparable with world-class wholesale standards and we expect to continue to grow profit margins.’