2San, one of Australia's fastest growing companies

This is the story behind a company that did not even exist in April 2020, that according to the Australian Tax Office (ATO) equity report was in the top 600 companies in Australia in terms of income, for the financial year ending 30th June 2022.

2San Pty Ltd, who reported Australian income of $737 million, higher than Diageo, L'Oreal and Sydney Tools, is owned by Exclusive Plymouth Brethren members Dean Hales and Raymond Lee in Australia, along with Simon Whiley and Jim Calder, in the United Kingdom and Denmark respectively.

​The company according to their website "is a trusted global Tier 1 supplier of high-quality innovative healthcare products and solutions that clean, test and protect". Operating across the globe most notably in Australia, Denmark, United Kingdom and the USA, they came to prominence with the supply of Rapid Antigen Tests to various Central & State governments in Australia. 

Covid Contracts

We have managed to ascertain that 2San were awarded contracts in Australia by the Australian Government Department of Health & Aged Care, Canberra Health Services in the Australian Capital Territory, Tasmanian Government and the Victoria Government. In the UK by Cumbria County Council and more recently included on a framework agreement with the NHS supply chain. In total the contacts awarded from the date 2San was incorporated up to 30th June 2022, account for a maxmium of $72 million dollars. Clearly a long way short of an income reported of $737 million! The 2San Pty accounts also show that all the income was generated by sales in Australia.

Import data

The 2San Pty Ltd accounts shows a large creditor outstanding amount to the Danish arm of the company 2San ApS, which would suggest that they have been importing a high percentage of their goods from Denmark. This is also backed up by the increase in Medical Equipment products on the export/import data between Denmark/Australia. I estimate that 2San could be accounting for 25% of imports from Denmark in this sector.

Regulatory Issues

In their huge growth 2San have certainly encountered some regulatory issues with the Therapeutic Goods Administration (TGA) in Australia. In August 2022, 2San Pty Ltd were fined $66,600 for allegedly failing to provide ongoing evidence to support the performance of its Covid-19 rapid antigen tests.

Then at the beginning of July 2024, they entered into an enforceable undertaking after unlawful import and supply of medical devices. 

This included:

• conduct an annual audit and provide the written audit report to the TGA
• pay the costs of its compliance with the enforceable undertaking
• conduct a recall of the unregistered therapeutic goods
• seek to obtain certification under ISO 13485:2916 Medical devices: Quality management systems
• engage an external qualified compliance professional to advise 2San on relevant regulatory procedures 
• conduct activities to increase industry awareness of their obligations to comply with the Act and related regulations
• notify the TGA within 48 hours of any instance of suspected non-compliance with the Act and or the regulations.

Test & Trace Team

In 2021 I reported on the incredible story of 2San employing Mark Hewlett & at least 10 others. Hewlett was known for his role as a director at the UK Health Security Agency, the agency responsible for UK government management and procurement of the Covid Test & Trace programme. Hewlett was a member of the executive committee and the Daily Mail reported how he was in the top 3 in terms of salary. Hewlett brought with him to 2San a large number of his team from UKHSA. It is worth noting that Hewlett and most of the team have since departed 2San.

Income

I have struggled to fathom, based on the contracts I have discovered, and taking into consideration the sector which 2San supply, how it would be possible to have an income of $737 million in their initial full year of trading. The fact that the whole income was generated by sales in Australia, it would suggest that 2San has been supplying another unknown company.

Conclusion

The incredible growth and the income generated by 2San is a mystery, to be in the top 600 companies in Australia after one full year of trading is remarkable. It is a story which I will continue to monitor and would appreciate any inside information that would show how these massive sales were generated.