Yes, CW tend to wring out terms that might upset the likes of TW (or Priceline if it were API that had won the contract). This wouldn't be a surprise for Symbion though, but the value of the CW volume is obviously worth that risk. With enough pharmacy owners owning multiple stores under different banners, supplier and wholesaler terms tend to get around eventually.
DHL have been keen for a few years now. They are already going virtually everywhere medication needs to go, with enough frequency to be able to handle the obligations without too much additional trouble. They wouldn't take on supply to a specific pharmacy group though as they would need to cover the entire PBS range (like a wholesaler) if they were to take over the CW contract. Instead they will have to build their presence by taking on the business of specific suppliers (which they have already done with Pfizer and AZ), delivering to all pharmacies and incrementally taking volume away from the wholesalers. Pfizer and AZ alone may not be the end of the world (despite the loud objection from the wholesalers at the time), but other suppliers moving their business to DHL/direct would gradually chip away at the size of the pie remaining for the wholesalers to compete for.
SIG Price at posting:
47.0¢ Sentiment: None Disclosure: Not Held
(20min delay)
