Chemist Warehouse miss deadline to lodge defence, page-11

I doubt whether CW will want to set up a national wholesaling operation. Although if they did I am certain their wholesaling entity would try and gouge margins by screwing their own retail outlets and the part owners. Seen this with other large groups who have attempted to run wholesaling operations. They may have the scale on the eastern seaboard but not the rest of Australia.

The margins on generics have gradually tightened over the last decade and this is eventually going to stress the discount model. The generic manufacturer and supply chain has stabilised in Australia after years of cut throat business practices. Also the number of blockbuster generic coming on line has fallen dramatically and price disclosure pricing policies have cut margins on the big molecules. CW discount model is being challenged from both sides........ competition from other discount groups and less wriggle room on their generic margins.

I think the current issue the have with the cost of supply of Sandoz generics is an indication of the pressure their model is under from a range of suppliers who have put up with their bullying for years.