Concur 100% genericmicrobe. Sad what has happened, and even in...

Concur 100% genericmicrobe. Sad what has happened, and even in terms of Sigma its just so short-sighted. Even if they do allow these groups to grow aggresively how is that good for Sigma? There is no goodwill or loyalty there, it will be just whose tender comes cheapest for the next contract. And its hurt the whole industry including themselves doing it, not to mention their relationships with everyone else.

I wouldn't stress about the Gateway program. It was pretty small IIRC and only for Embrace members (ie. support Sigma in generics, wholesale & OTC) which none of the big groups do. When I say that Sigma are bankrolling these groups I don't mean directly in terms of a loan. They have separate contracts which have been done on silly trading terms ie. 6 months forward charge and large discounts. That effectively means that if your annual Sigma account was $3m, you would be getting a $1.5m interest free loan! This is causing Sigma pain and pissing everyone else off. And worse, there is little in it for Sigma. 1 of the contracts is loss making and I'm told won't be renewed, It better not or I'd leave on principal. Another I'm told, if Sigma was to pull away the forward charge would result in a flood of pharmacies on the market. They had the nerve to tell me that this wouldn't be good for pharmacy valuations, yet allowing this debt fueled overexapansion was a good thing?(Its putting price pressure on all levels)

On consolidation, the smaller end already has with the CSO(an agreement with govt regarding timely access to PBS medicine). I find it diffiuclt to see the ACCC allowing it in regards to the 3 wholesalers, as you would be left with 1 behemoth and 1 smaller player...... (they wouldn't even let Mobil go) Not going to happen.