** Shares of Australia's Paragon Care PGC.AX fall 6% to A$0.235, their steepest intraday pct drop since December 19

** Stock down 4.1% so far this week, set for its first weekly fall in four weeks, if losses hold

** The medical equipment provider says that from Feb 1, it will transition out as primary wholesale to Ramsay Healthcare's RHC.AX retail and hospital pharmacy business

** Adds that it will focus on removing associated supply chain costs, expected to neutralise gross margin impact

** Nearly A$4.5 million ($3.02 million) working capital to be released, which will be used to repay debt, co says

** PGC stock up 9.3%, YTD

($1 = 1.4921 Australian dollars)

(Reporting by Keshav Singh Chundawat in Bengaluru)

((Keshav.singhchundawat@thomsonreuters.com))