17th April, 2002

Sigma/API to address ACCC concerns


Sigma Company Limited (SIG) and Australian Pharmaceutical Industries (API) announced that they had been advised of the views of the Australian Competition & Consumer Commission ("ACCC") regarding the proposed merger between the two companies. .

In a joint statement, API Managing Director David Young and Sigma Managing Director Elmo de Alwis said "We are analysing the issues raised by the ACCC in detail, and we have not as yet had any substantive opportunities to discuss with them ways in which these concerns can be addressed. We believe that a merger of the two companies would provide a much more viable long term industry structure, for the benefit of customers. However we look forward to having such discussions with the ACCC, as we have a number of constructive propositions to put to them that we believe should satisfactorily address their issues."

"Recognising the possibility of the ACCC raising concerns, we have earlier this week provided the Pharmacy Guild of Australia, which represents in excess of 90% of pharmacies in Australia, with the opportunity to review our suggested propositions. The Guild has indicated today that, having examined the information provided to them, they are satisfied with the proposals and ensure there would be no diminution in service levels or terms of trade being offered to pharmacists and consequently reflected in advice and service to the community."

" A key objective of the merger has always been to reduce excess costs in the pharmaceutical supply chain in Australia. This is consistent with Federal Government policy."
The companies will be seeking an appointment with the ACCC at the earliest opportunity to progress discussions.

Further enquiries should be directed to:

Mr Elmo de Alwis (03) 9839 2800
Mr David Young (02) 9843 5100