Sigma Healthcare Ltd (ASX: SIG) recently announced that agreement has been reached with the My Chemist / Chemist Warehouse Group in relation to their ongoing supply agreement.
Importantly this clarifies that products won't be procured from other Consumer Service Obligation (CSO) pharmaceuticals providers. The Sigma share price was hammered in May of this year on news that the company was in dispute with the My Chemist / Chemist Warehouse group.
Consequently Sigma has been able to confirm its current year guidance for EBIT at $90 million.
Sigma is Australia's largest pharmaceuticals wholesaler and manufacturer, exposing the company to a diverse range of markets.
Sigma Healthcare is trading at around 87 cents, on volume of 3.5 million shares.
Analysts had an average price target of 84 cents on Sigma prior to the announcement.
