The collapse of the three trading entities in the Converse Pharma Group (Testerworld Limited, Doncaster Pharmaceuticals Group Limited and Eclipse Generics
Limited) (the Group) in May 2022 undoubtedly caused ripples
throughout the pharmacy industry.
The Group, a major supplier of pharmaceuticals, had a combined turnover over £300m, employed 1,000 staff members and supplied over 4,000 pharmacies throughout the
country.
The Group is licensed and regulated by the MHRA. At the beginning of 2021, a breach of the MHRA licensing regulations caused a temporary (but prolonged) cessation
of trading.
The Group was able to secure the ongoing support of its secured creditors during this time, however, when the licenses were subsequently reinstated, they came with
restrictions.
Unfortunately for the Group, the period of the suspension and the subsequent restrictions over the licences caused a significant reduction in revenue, from which
the Group was unable to recover.
Ultimately, by May this year, the companies in the Group had exhausted their working capital and had no prospect of raising the funding they required to continue
to trade.