Sigma Healthcare Limited
(ASX:SIG) has decided to commence legal proceedings against the My Chemist/Chemist Warehouse Group, in relation to its current Supply Agreement.
The wholesale and distribution pharmacy business says, the proceeding relate to the My Chemist/Chemist Warehouse Group’s (MC/CW) intention to buy certain products from an alternative Community Service Obligation (CSO) Wholesaler.
Sigma says, under the existing agreement, My Chemist/Chemist Warehouse Group (MC/CW) was not entitled to acquire products from other CSO Wholesalers.
The company says if the My Chemist/Chemist Warehouse Group (MC/CW) does buy the particular products elsewhere, it would impact Sigma’s (current year underlying) EBIT by about $5 million to $10 million.
As a result of this and its subdued start to the year, Sigma’s EBIT could be 5% below FY2016/2017.
Shares in Sigma Healthcare Limited
(ASX:SIG) are currently trading 22.78% lower to 91.5 cents.
