Sigma Healthcare shares are being smashed

Peter Macdiarmid/Getty Images

Shares in Sigma Healthcare fell hard after the chemist wholesale group announced legal action against a pharmacy chain.

A short time ago, the shares were down 27% to $0.862.

The dispute is with the My Chemist/Chemist Warehouse Group over a supply agreement.

Sigma says My Chemist/Chemist Warehouse Group wants to go against the terms of the agreement and source products from another wholesaler.

“As a satisfactory resolution has not been reached, Sigma has now decided to commence legal proceedings,” the company says.

Sigma says the impact on earnings is expected to be between $5 million and $10 million a year.

The company says underlying EBIT (earnings before interest and taxes) this financial year could be up to 5% below last year.

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