SIG 0.00% $2.91 sigma healthcare limited

I'll start by saying, no doubt there is a notable increase in...

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    I'll start by saying, no doubt there is a notable increase in the prospect of the contract being canned come 2019 or earlier. But...

    ...if one party is soooo motivated by the prospect of lower prices in a smaller segment, that they would allegedly breach their contract, what makes you 100% certain they won't do an about face if the *total* contract is still cheaper than other wholesalers?

    Of course, suing a customer is an ugly, ugly event that is hard to overlook. But if what we've heard is to be believed, and that CW are knowingly going outside the contract and taking a portion of business elsewhere based on prices, it would be pretty clear their primary motivation is based on the cheapest outcome - which any wholesaler could still provide, or multiple if CW start to tender by segment instead of an entire supply operation.

    The relationship would be shot, but really, this would mostly be at a head/management level. Not sure about an impact on day to day operations, at least not as much as changing your wholesaler altogether - the impact there could easily add its own risks and costs, which CW have shown they are averse to. In time I think *both* parties could come to the realisation that they can't necessarily feel aggrieved for their own actions...and that the grass won't necessarily be greener on the other side.
    Last edited by Nomadic_Investor: 26/05/17
 
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