Govr - Margins for Pharmaceutical Wholesaleing is always very low (Government Controls) but it is a super cash cow. The areas that Sigma needs to continue to grow are its manufacturing which is vertically integrated into OTC, consumer and generic prescription products as the magins can be very good in those areas. The generic products margins are very tight at the moment because of heavy discounting as the generic companies slug it out for market share. In the next year or so there should be some rationalisation and hopefully less discounting.
SIP Price at posting:
94.5¢ Sentiment: LT Buy Disclosure: Held
