PHARMACEUTICAL wholesalers stand ready to play a key role in the distribution of COVID-19 vaccines when they become available, Sigma Healthcare CEO, Mark Hooper, says.
Announcing like-for-like revenue growth of 9.5% across the group's pharmacy brands and reported earnings before interest, tax, depreciation and amortization of $25.2 million, for the first half of its 2021 financial year (up slightly on the prior corresponding period), Hooper said the signing of the Seventh Community Pharmacy Agreement (7CPA) and the Community Service Obligation (CSO) were critical to the pharmaceutical wholesale sector.
"The new agreements provide increased stability and funding for our pharmacy customers and improved funding and recognition of the role CSO wholesalers play in supporting timely and equitable access to medicines across the country," he said.
"The critical role of CSO wholesalers, together with community pharmacy, has never been more clearly demonstrated than through the support provided to Australian patients during bushfires and COVID-19.
"This network now stands ready to be part of the solution for the distribution and administration of COVID-19 vaccines when they become available."
Hooper also noted that the business had reduced its reliance on the Pharmaceutical Benefits Scheme (PBS) to "around 50% of sales, which we expect to reduce further".
He added that Sigma's pharmacy business had been hit by reduced merchandise and marketing income due to lower promotional activity during the COVID-19 restrictions, and the increased provision for "doubtful debts" stemming from the uncertainty of the current economic environment, however, this has been offset by underlying growth in other areas of the business and cost reduction efforts.
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