Pharmacy Daily | Sigma executive insider trading charge

SIGMA Healthcare GM of Business Development Mergers & Acquisitions, Michael Story, has been charged with two counts of insider trading by the Australian Securities and Investments Commission (ASIC).

Story, whose LinkedIn profile also notes he is Managing Director of the PharmaSave retail pharmacy network, has been accused of disposing of almost 900,000 Sigma Healthcare shares in May and Jun 2018, just weeks before the company announced the end of its wholesale supply agreement with Chemist Warehouse Group (PD 02 Jul 2018).

The announcement saw Sigma's share price plummet more than 40%, with ASIC alleging that at the time he disposed of the tranches of Sigma shares, Story was "in possession of inside information relating to the status of negotiations to renew the wholesale agreement between Sigma and Chemist Warehouse Group".

The matter is being prosecuted by the Commonwealth Director of Public Prosecutions, with a committal mention hearing in the Melbourne Magistrates Court scheduled for 18 Dec.

On Fri Sigma issued a statement confirming it was aware of the commencement of the proceedings.

"While Sigma is not party to the proceeding, we are taking this matter seriously and will continue to monitor the court process," the company said.

"Sigma has been assisting ASIC with its enquiries, and no other Sigma employees are under investigation in regard to this matter," the update noted.

"Michael remains an employee of Sigma at this point in time," the company added, saying it was "committed to upholding high standards in corporate governance".

As well as his role with Sigma Healthcare, Story is listed as an investor on the website of pharmacy distributor Heat Group, which also notes his former role as GM for Chemist Warehouse where he was "heavily involved in the development of Chemist Warehouse to be the number one recognised brand in pharmacy".

ASIC noted that the maximum penalty for insider trading is now 15 years in prison.