Consumer food producer, Wattle Health Australia Ltd.’s (ASX: WHA) stock rallied up 3.5% on December 07, 2017 as the group entered into a distribution arrangement with Australian Pharmaceutical Industries Ltd (ASX: API), which is one of the largest distributors to Australian Pharmacy. WHA securities were in a trading halt since December 05, 2017 and zoomed up post resuming trading.

The arrangement specifically entails distribution of WHA’s premium infant formula range through API’s Priceline Pharmacy network and API’s wholesale distribution to other pharmacies across Australia. This move is first of a kind for WHA whose infant formula products will now be sold in the Australian pharma retail market. Overall, the group expects to gain on brand awareness, sales and credibility at domestic level. The group also has distribution agreements in place with AYD in China, Tesco Lotus in China, and Metcash in Australia. The group expects its CFDA accreditation within three months from November 2017 and this will help it comply with 2018 regulations as set out in China. The rise from a stock price of 20 cents for WHA while financial performance has been just modest, speaks leaps and bounds about players in the sector with the ever-changing regulatory norms.

On a side note, while WHA has been gaining some momentum; competitor, The a2 Milk Company (ASX: A2M) witnessed some losses while it updated the market on a settlement reached in respect of the legal dispute with Lion - Dairy & Drinks Pty. The parties have mutually agreed not to proceed with their cases against each other, with terms of the settlement remaining confidential.

Meanwhile, API stock edged up by 0.32% and has been on the pharmacy retail sector forefront. The group’s FY17 reported NPAT was up 1.36% with revenue surging 5.8% over FY16.

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