Posted by Michael Wonder on 24 May 2017
Sigma launches suit to enforce supply deal as share price tanks
24 May 2017 - Sigma Healthcare has asked a court to force the MyChemist and Chemist Warehouse chains controlled by Jack Gance, Sam Gance and Mario Verrocchi to continue to buy generic medicines from the company.
News that the Gance group, the largest pharmacy chain in Australia, was intending to drop Sigma as a supplier of generic medications manufactured by Sandoz carved more than 30 per cent from the company’s share price yesterday after it told the market the move could cost it between $5 million and $10m a year in earnings.
In a statement of claim lodged with the Victorian Supreme Court yesterday, Sigma said its chief executive, Mark Hooper, learned the Gance group of pharmacies was planning to move to an unnamed supplier of generics manufactured by Sandoz at a meeting with Mr Verrocchi three weeks ago.
