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Wellnex Life (ASX:WNX) jumped 6% to 70cps heading into lunchtime trades Sydney time as the TGA greenlights its liquid paracetamol and caffeine combination.
In technical terms, the TGA has given the product Market Authorisation (MA). This, Wellnex wrote on Tuesday, was “validation of company’s innovation to achieve 4MAs with the [TGA].”
“Market authorisation is the approval given to supply a therapeutic good in Australia, and, in most cases, involves entry on the Australian Register of Therapeutic Goods (ARTG),” the TGA writes on its website.
The approach may be innovative, but worth noting is Wellnex’s 6% jump is based on less than $15,000 of share turnover and a volume of around 15,000.
Still, this now adds to Wellnex’s portfolio of liquid paracetamol products including a standalone, one with ibuprofen and another ‘liquid mini-ibuprofen’ MA.
“Wellnex Life’s four MAs for a range of liquid soft gels is a validation of the Company’s philosophy of being either ‘first’ or ‘fast’ to market with innovative products for the consumer health market,” the company further elaborated.
Wellnex expects “domestic and international companies like Chemist Warehouse and Haleon” utilising its MA portfolio will drive “additional revenue opportunities.”
In between the lines, Wellnex intends to sell the brands as a licence to third parties, rather than sell a combination of paracetamol and caffeine on shelves.
Whether market demand exists for a liquid paracetamol product that happens to contain caffeine – paracetamol isn’t drowsy, though people with a cold or headache may perceive a stimulant benefit – remains to be seen.
“The approval of liquid paracetamol plus caffeine soft gel market authorisation is a great testament to the Company and its internal capabilities,” MD Zack Bozinovski said.
WNX last traded at 70cps
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