Chemist Warehouse and Sigma Healthcare have officially merged, creating a $32 billion pharmacy giant that debuted on the Australian Securities Exchange (ASX) on 13 February 2025. The merger establishes one of the country’s largest pharmacy networks, with Chemist Warehouse becoming a wholly owned subsidiary of Sigma Healthcare.
Chemist Warehouse co-founders Jack Gance, Sam Gance, and Mario Verrocchi were present at the ASX for the market debut, ringing the opening bell to mark the occasion. Addressing the crowd, Verrocchi described the listing as a milestone achieved through decades of perseverance.
“After 50 years of toil, 50 years of grind, a bit of blood, sweat, and tears, we’ve established ourselves as the leaders of this industry,” Verrocchi said.
Chemist Warehouse, founded in 1972, has built its success on high-volume, low-cost retail sales, offering competitive pricing on a wide range of skincare, beauty, vitamin, and over-the-counter products.
The company also operates MyChemist, Ultra Beauty, My Beauty Spot, and Optometrist Warehouse, expanding its presence beyond traditional pharmacies.
Leadership Structure Post-Merger
In the merged entity, Sigma Healthcare’s CEO and Managing Director, Vikesh Ramsunder, will continue in his role, overseeing the combined operations. Mario Verrocchi, co-founder and CEO of Chemist Warehouse, will manage the retail pharmacy chains under the merged group, including Chemist Warehouse, Amcal, and Discount Drug Stores. Additionally, Chemist Warehouse co-founders Jack Gance and Mario Verrocchi have been appointed to the board of the merged company, contributing their extensive industry experience to the strategic direction of the new entity.
A Dominant Force in the Pharmacy Sector
The newly merged entity brings together Chemist Warehouse’s nearly 600 stores with Sigma’s network of 340 Amcal and Discount Drug Stores outlets, creating a business that now controls 16 percent of Australia’s pharmacies.
Under the deal, Chemist Warehouse shareholders own 85.75 percent of the merged company, while Sigma shareholders hold 14.25 percent. The three Chemist Warehouse co-founders now collectively hold approximately $15 billion in shares, which are locked in escrow until at least August 2025.
The company’s first day of trading saw Sigma’s stock rise 5.4 percent to close at $2.91, reflecting strong investor enthusiasm for the pharmacy giant’s market debut.
Expansion Plans and Future Growth
Verrocchi has outlined an ambitious plan for growth, with the merged business aiming to add at least 400 more stores over the next five years. He also likened the merger to a marriage, stating that discussions on rebranding Sigma’s pharmacy brands under the Chemist Warehouse banner were still in the early stages.
“We’re saying it’s like we’re getting married. But we can’t ask, ‘Where do you live, how much money do you have in the bank?’ We can’t ask anything. So we’ll open up the suitcase tomorrow,” he said.
Industry Concerns and Regulatory Scrutiny
The merger has raised concerns within the pharmacy sector, particularly from the Pharmacy Guild of Australia, which fears reduced competition and potential price increases for consumers.
“Such consolidation has led to non-competitive duopolies and an unequal distribution of healthcare services, ultimately reducing the presence of smaller, local businesses,” the Guild said in a statement.
Despite these concerns, the Australian Competition and Consumer Commission approved the deal, paving the way for the creation of one of the largest pharmacy groups in the country.
A Long-Term Vision for Industry Leadership
With its ASX listing complete, the company is positioning itself as a vertically integrated retail and pharmaceutical giant, taking inspiration from UK health and beauty retailer Boots.
“For the next five years, I’ve chained myself to my desk,” Verrocchi said, reaffirming his commitment to leading the company’s growth strategy.
