Pharmacy Daily | Sigma sees branded growth

SIGMA Healthcare ceo Mark Hooper yesterday confirmed the company was "starting to see a return to growth in our brand member pipeline," but said general trading conditions have continued to be challenging in the last quarter.

Speaking at the Sigma annual general meeting, Hooper also updated investors on recent successes with the mps dose administration business and in tendering for new contracts within the Sigma Hospitals division.

"We will begin reaping the rewards from our current investment cycle that will add to our performance in the years ahead," Hooper promised.

During his presentation the Sigma ceo also reiterated the company's current concerns around the National Medicines Policy, which ensures patient access to essential medicines anywhere in Australia usually within 24 hours.

"It is the leading system anywhere in the world...CSO Wholesalers like Sigma are the arms and legs that make this possible," he said.

However, as he highlighted during APP2018 (PD 04 May), the issue of exclusive direct distribution is a key worry because some manufacturers are cherry-picking the most profitable products to deliver to pharmacy bypassing wholesalers.

"In a cross subsidised system such as this, allowing the more profitable products to be selectively removed from the system cannot be sustained.

"This is the reverse of normal disruption - it is the equivalent of telling consumers you can only use Telstra for your mobile phone service," Hooper said.

The other key issue that Sigma is seeking government resolution on is the wholesaler funding model, which sees them paid a percentage margin on the value of the PBS products they distribute - meaning their income has declined in line with the PBS pricing reforms.

Hooper said the company continues to consult on de-linking wholesalers from the ongoing price decline - similar to the Administration Handling and Infrastructure measure implemented for pharmacists.