API downplays Alliance loss
July 5, 2011
AUSTRALIAN Pharmaceutical
Industries says it’s continuing to
trade with a “large number” of
former Pharmacy Alliance (PAL) and
Independent Pharmacists of
Australia Group (IPAG) pharmacists,
despite the groups switching their
major supply contract to Sigma
Pharmaceuticals (PD Fri).
In a statement to the ASX
yesterday, API said it had recently
executed preferred wholesaler
agreements with approximately
150 members, while a further 50
PAL/IPAG members were also
continuing to trade with API.
“API expects to increase its level
of trading with members in the short to
medium term,” the statement said.
In contrast to API’s assertions,
Sigma and PAL last week claimed
that during the five year term of
the new agreement they expect at
least two thirds of PAL and IPAG
members to use Sigma as their first
line wholesaler.
The groups together comprise
about 380 pharmacies turning over
around $400 million in wholesale
revenues - a significant amount of
business for the wholesalers.
“The commercial terms agreed
with Sigma are superior to others
offered up through the competitive
market process for independent
community pharmacies,” according
to PAL Chairman Simon Reynolds.
“The overwhelming majority of
the Pharmacy Alliance Group have
already taken advantage of these
new arrangements,” he said.
API said it continues to reserve its
rights with regard to its contractual
relationship with PAL and IPAG.
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