Xenitra Ltd (ASX:XEN) has expanded its healthcare business into specialised medical nutrition through a 3-year framework purchase agreement targeting A$5 million of Food for Special Medical Purposes (FSMP) products.
The agreement, signed by recently acquired subsidiary Hong Kong Fukang Trade Limited with Joy Charm Limited, will run from August 12, 2026, to August 12, 2029.
The A$5 million figure represents a target aggregate procurement amount rather than a guaranteed minimum purchase obligation, with individual products, quantities, pricing and delivery arrangements to be determined through separate purchase orders.
Building Fukang healthcare pipeline
The agreement broadens Fukang's activities beyond conventional over-the-counter (OTC) medicines into FSMP products, while using the subsidiary's existing sourcing, regulatory, logistics and commercial infrastructure.
It follows Xenitra's recently announced A$12 million, 3-year pharmaceutical procurement agreement with Kangsheng and adds another commercial relationship to the healthcare sales pipeline.
Fukang, which was acquired and integrated into Xenitra earlier this year, generated more than A$450,000 in sales during July, its first month following post-merger integration.
Xenitra non-executive chairman Dr Anthony Noble said the latest agreement demonstrated the broader commercial opportunities created through the Fukang acquisition, particularly across adjacent healthcare categories.
“Importantly, this agreement expands the opportunity beyond conventional OTC medicines and into Food for Special Medical Purposes and specialised nutrition,” Noble said.
Specialised medical nutrition opportunity
FSMP products are formulated for people with particular nutritional or medical requirements and represent an adjacent market to Xenitra's existing nutritionals and OTC medicine businesses.
Xenitra said China's FSMP market increased from about RMB7 billion in 2020 to RMB23 billion in 2024, while national FSMP imports increased by about 50% between 2021 and 2023.
Under the Joy Charm framework, 20% of the value of each purchase order is payable within 7 days of execution and receipt of invoice. The remaining 80% is payable within 7 days after receipt of the required commercial and shipping documentation.
Next steps
Specific FSMP products, quantities, prices and delivery schedules will be established through individual purchase orders over the 3-year agreement term.
Each purchase order will contribute toward the A$5 million aggregate procurement target, with Xenitra seeking to build Fukang's healthcare sales pipeline alongside its nutritionals business and OPAL tokenised sales platform.
About Xenitra
Xenitra distributes fast-moving consumer goods, nutraceuticals, OTC medicines and personal care products through B2B trading, retail and ecommerce channels in China.
The company also operates blockchain-enabled tokenised distribution channels through its OPAL ecosystem and has ecommerce, livestream commerce and distributor infrastructure across China and Australia.