Sigma, API shares fall after Pfizer reveals Australian distribution model

Pfizer's decision to sell drugs to pharmacies rather than use Australian wholesalers has sent the share price of the country's leading wholesalers into a tailspin.

Pfizer's decision to sell drugs to pharmacies rather than use Australian wholesalers has sent the share price of the country's leading wholesalers into a tailspin. Sigma Pharmaceuticals' shares down about 20 percent, while Australian Pharmaceutical Industries' fell roughly 10 percent after Pfizer unveiled its radical distribution model, according to the Sydney Morning Herald. A third company, Symbion, is privately owned, but will also be affected. The three companies each earn millions annually from selling Pfizer's drugs, the Herald Sun points out.

The move is part of an effort to shield Pfizer's portfolio of branded drugs, which includes Lipitor, that will soon face generic competition. It also comes as a result of Pfizer having to examine its business model "to meet some of the challenges in the healthcare environment including Pharmaceutical Benefits Scheme (PBS) reform," the company says in a statement. 

According to The Australian, Sigma is assessing