API likely to amend terms
January 18, 2012
AUSTRALIAN Pharmaceutical
Industries yesterday warned that it
was expecting to once again alter
discount terms to its wholesale
customers, as it deals with the next
stage of PBS reform.
Speaking at the API agm,
chairman Peter Robinson said the
April price reductions announced
by the govt before Christmas were
“significantly higher than expected
and we are currently reviewing the
potential impact.
“Management is currently
formulating plans to ensure there
are no issues with inventory for
either API or our customers and the
adjustments in discounts for our
customers,” he said.
Despite a gloomy retail outlook,
Priceline performed well over the
past year with total sales growth of
2.3% making it “one of only a few
retailers to post positive comparable
store growth...underscoring the
difficult trading conditions facing
the industry as a whole .”
MEANWHILE also at the AGM,
ceo Stephen Roche said there were
a number of positive impacts of
PBS reforms for the company.
He said that reduced dispensary
income would accelerate the need
for pharmacists to diversify their
customer offering and “lead to an
increased level of interest by
pharmacists for brands.
“We believe Priceline is well
placed to benefit from this need,
which in turn should lead to
accelerated store roll-out growth”.
Roche said API also expects to see
further growth in its Soul Pattinson
and Pharmacist Advice brands.
AND Roche also forecast a “better
earnings year in 2012,” after the
company’s underlying pre-tax net
profit of $20.8m was hit by a $50m
impairment to the Financial
Guarantee Program for pharmacists.
He said that the firm was poised
for futher growth in Priceline
Pharmacy, saying “we increasingly
view ourselves as being a specialty
retailer rather than a healthcare
company”.
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