Sigma Healthcare (ASX: SIG) shares will be on watch today after making an announcement after the market had closed on Friday last week.
Sigma Pharmaceuticals is a pharmacy distribution business and the name behind Amcal, Chemist King, Discount Drug Stores, Guardian and PharmaSave. In 2018, Sigma announced it would lose its contract to supply Chemist Warehouse. However, it remains a multi-million dollar company with chemists dotted throughout the country.
Sigma Healthcare’s Potential Deal
As the introduction referred to, Sigma lost its contract to supply Chemist Warehouse last year.
In the announcement last week the company said that it has become aware of market speculation about the potential for Sigma to supply FMCG (fast moving consumer goods) products to the My Chemist / Chemist Warehouse Group.
Sigma confirmed an approach has been received MC/CW and negotiations are ongoing about a resumption of the supply of FMCG products. There is no certainty these negotiations will result in an agreement being reached between the parties.
Management will provide a market update once the outcome of the negotiations is agreed.
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