THE reverse takeover of Sigma by Chemist Warehouse (CW) will increase prices, reduce service quality and degrade the healthcare available through the community pharmacy network, according to the Pharmacy Guild of Australia.
The peak body is urging all parties to make their submission on the specific Issues of Concern (PD 13 Jun) to the ACCC by 27 Jun.
The main problems are that structural market change may raise barriers to entry and expansion, particularly for independent pharmacies, and reduce competition in pharmacy retailing.
Also of alarm is the closure of community pharmacies currently supplied by wholesaler Sigma.
Further issues are over the access and use of Sigma-supplied independent pharmacies' data, reduced community pharmacy competition, and the closure of rival suppliers.
The Guild is asking state and territory governments, through their pharmacy regulators, to continue to scrutinise complex business models for compliance with existing community pharmacy ownership laws.
In an ASX statement yesterday, Sigma CEO and Managing Director Vikesh Ramsunder said, "we are co-operating closely with the ACCC and look forward to continuing to do so in the next phase of the merger review".
"The proposed transaction will ensure that Sigma, consistent with its regulatory obligations, can continue to serve franchisee and independent pharmacies alike with a competitive offering, whilst delivering a transformational change for all Sigma stakeholders."
ACCC anticipates making a final decision on 05 Sep, however, this timeline can change.
To learn more and to make a submission, CLICK HERE. JG
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