In June 2006 the Company announced the acquisition of Douglas Pharmaceuticals Australia limited (DPAL). A strategic asset of the DPAL purchase is a diversified product portfolio which includes ‘blockbuster’ generic pharmaceuticals, branded generics, hospital products, over the counter (OTC) medicines and dermo-cosmetic products. This product range, along with an established direct sales model, provides the Company with the opportunity to bring its performance and market share expectations forward by several years and establish a sustainable platform for Genepharm's future growth and profit expectations.

The Company's operations can be summarised as follows:

The Company's focus is to establish a business with a diversified health care offering that is clearly focused on target customer segments. The acquisitions of both DPAL and EpiPharm have accelerated the Company's growth plans. Importantly Genepharm now has an infrastructure and diversified business model that will enable the business to expand its product offering and accelerate the achievement of growth targets.

The Company views an extended product range as a competitive differentiator that can build stronger loyalty and provide earnings stability for the business. Genepharm's sales channel is strongly positioned to realise incremental earnings from the development of an extended range of healthcare products that will also deliver sales growth for Australian pharmacists.