Paragon Care's Chances of Using Levy to Pass on Higher Costs `Close to Zero' -- Market Talk

Dow Jones
03/31

2218 GMT - Drug wholesaler Paragon Care might find it difficult to pass on higher costs arising from the Iran conflict to customers. Bell Potter says warehouse and distribution costs are almost certainly under threat from increased diesel prices and a range of inflationary cost pressures. Analyst John Hester says Paragon Care might consider a special levy to pass on costs to pharmacists. "However, pharmacies are highly price sensitive and the switching costs between wholesalers is close to zero," Bell Potter says. "Any such initiative would require a consensus move from all Community Services Obligation suppliers in order to avoid chaos." So, it's unlikely to happen. Bell Potter retains a buy call and A$0.30/share price target on Paragon Care, which ended Monday at A$0.19. (david.winning@wsj.com; @dwinningWSJ)

 

(END) Dow Jones Newswires

March 30, 2026 18:18 ET (22:18 GMT)

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