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Sigma, CWH could revive

Posted 4 November 2019

Sigma is in talks to re-initiate its partnership with Chemist Warehouse (CWH) to supply fast-moving consumer goods (FMCG) to the retail pharmacy behemoth. 

The group addressed "market speculation" over a renegotiation in an ASX announcement on Friday, saying talks were underway but nothing had yet been decided. 

"Sigma confirms an approach from MC/CW and negotiations... are ongoing regarding the supply of FMCG products," the ASX announcement said.

"There is no certainty these negotiations will result in an agreement being reached between the parties.

"Sigma will provide a market update once the outcome of these negotiations is agreed."

Sigma lost the CWH business last year after the retail chain decided not to renew the supply contract it had with the wholesaler, opting instead for a five-year contract with EBOS. 

The loss triggered an enormous round of cutbacks at Sigma, including the shutdown of distribution centres and staff layoffs, while revenue plummeted. 

MedAdvisor signs CWH deal

Meanwhile, digital medication management platform MedAdvisor has signed a new three year agreement with CWH.

The company said the agreement is expected to generate $5 million in revenue over the period, including revenue from patient messaging fees and Health Programs facilitated and distributed by MedAdvisor.

"The audience of patients eligible for both digital and in store Health Programs is expected to significantly increase," it said. 

MedAdvisor also announced an agreement last week with Kings Transport to allow its network pharmacies to deliver medicines to patients. 

"The agreement will allow MedAdvisor to enable same day medication delivery fulfilment service to its 3,300 network pharmacies for use with their 12 million Australian customers, including those who order directly via the MedAdvisor app and SMS," it said. 

Initial rollout will begin in the second half of 2020 with a focus on metropolitan areas. 

"By adding enhanced convenience services like delivery to their customer proposition, community pharmacies can deepen the vital relationship between patients and their regular pharmacist," MedAdvisor CEO Robert Read said. 

"Having these services activated in readiness for ePrescribing is a huge opportunity and risk mitigation for community pharmacy."

Yajun Ma

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