Ann: Trading Update - My Chemist/ Chemist Warehouse Group, page-21

CW are nasty to negotiate with, they like to think of themselves as ruthless. They are already DIY, but because a large part of their supply is locked in with Sigma, I'm not sure of the percentage, but I know it's a lot, it limits them in negotiations with other big pharmas. CW model is very unique and they are already not liked by small pharmacists or the big pharmas because they are trying to do something different and undercutting everyone. Now add to that, they tried and failed to break an agreement with Sigma and went into negotiations to avoid court and having to pay court costs for both parties. This shows weakness and Hoops will well and truly jump on them for that, especially since they have been so arrogant for so long. So the worst case scenario is that Sigma lets them out of the agreement for some undisclosed costs etc and the SP will fall, but I think that is a HIGHLY unlikely scenario given that CW did not lodge a defense to the court case. CW basically rolled over and showed their belly.