Direct distribution warning
May 10, 2012
SIGMA CEO and Managing
Director Mark Hooper has warned
that any expansion of the Direct
Distribution system pioneered by
Pfizer could potentially undermine
the objectives of the Government’s
National Medicines Policy.
Speaking at the company’s
Annual General Meeting Hooper
said Sigma will continue with its
efforts to seek regulatory change to
ensure that all Pharmaceutical
Benefits Scheme medicines are
available via CSO wholesalers.
Hooper also used the meeting to
reaffirm the company’s
strengthened financial position,
saying “we have delivered on
undertakings we made last year”,
which included improving
profitability and increasing the
return on invested capital.
“We have increased profitability
and now have a stronger balance
sheet.
“Our net cash position was at
$113.6 million at year end,” he
added.
Also speaking at the event was
Sigma Chairman, Brian Jamieson,
who said that “despite the build up,
PBS reform had minimal impact on
our overall performance due to
measures taken by the business,
including reducing customer
trading terms and making further
cost reductions in the business”.
Those same strategies, according
to Jamieson, are also helping the
company in managing the ongoing
impact of Pfizer’s direct
distribution.
Moving forward, Jamieson said
that the company plans to renew
its focus on its retail offer and to
place further investment into its
Amcal, Guardian and Amcal Max
brands.
MEANWHILE in other Sigma
news, investors have approved a
pay rise for the Sigma board which
will see the pool of funds for paying
the directors raise by $150,000
from $1.1 million to $1.25 million.
Other measures approved by
investors at the annual GM
included new remuneration
arrangements for Hooper, following
his leadership in getting the
company back to profitability.
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