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Sigma Health has dropped further, now down 16 per cent from yesterday's close. The stock dropped from 58 cents to 51.2 cents at 12.40pm, just minutes after Australian Pharmaceutical Industries (API) released a scathing letter to the market confirming its intentions to pursue a merger are "unable to be taken forward" and it will sell its 13 per cent stake in Sigma. Trading volumes are very heavy, with trades going through in blocks of tens of thousands of shares.

API argues to takeover would have led to $60 million in synergies within three years.
"In contrast, the publicly available information on the restructure of Sigma's standalone business remains highly uncertain and unclear, while the business itself will be significantly downsized, following the decision by Sigma's major customer (Chemist Warehouse) to take its business elsewhere," API's letter states.

"The Sigma board has chosen a path to restructure its significantly downsized business, rather than pursue a merger to create a future that benefits consumers, pharmacists and both sets of shareholders. API has closed its data room and is reviewing its shareholding in Sigma which it acquired in the latter part of 2018."

Leaves EBOS as the largest pharmaceutical wholesaler....