Increase in Budget of CSO (Community Services Obligation) Pool for full line wholesalers largely compenstates for reduction in dollar margins on distribution of PBS products.
Indications are that tightening of some of the over generous trading terms is not a problem and is accepted as necessary. Commonsense tells you that API and Symbion are not going to go the same way Sigma did and try and buy business. Remember those two companies are essentially wholesalers only and don't have the same higher margin operations to help offset the cost of discounting that Sigma had (or thought they had). If Sigma lose a few of the customers on the super deals then so what.
SIP Price at posting:
34.0¢ Sentiment: LT Buy Disclosure: Held