THE National Pharmaceutical Services Association (NPSA) representing full-line pharmaceutical wholesalers, has welcomed changes to the Community Service Obligation (CSO) Deed announced yesterday (PD breaking news) and says it is looking forward to working closely with government over the coming months to further secure the long-term stability of the sector.
CSO wholesalers will each receive a proportion of a total $15 million in additional funds to offset the impact of a funding agreement between the government and Medicines Australia that was announced as part of this year's Federal Budget.
Sigma Healthcare said in its ASX announcement that it would receive $5.2 million of the funding, calculated based on its CSO market share over the past two years.
"The amendment to the CSO Deed reflects the Federal Government's budget commitment to provide compensation to CSO wholesalers to offset the impact of the funding arrangement agreed by the government with Medicines Australia," the company said.
Sigma said from an earnings perspective it would recognise the additional monies between now and June 2020 in line with the corresponding impact from the Medicines Australia agreement.
EBOS offshoot Symbion and Australian Pharmaceutical Industries will also share in the additional revenue, but have not announced details at this stage.
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