** Shares of Australia's Sigma Healthcare set to more than double their annual gains in 2024

** Stock on track for a more than 160% rise in 2024 after a 70% gain in the previous year

** Stock has risen steadily over the year on optimism surrounding its $5.78 bln backdoor merger with private pharmacy chain Chemist Warehouse

** SIG in November received clearance from the competition watchdog to go ahead with the deal

** Chemist Warehouse in late 2023 said it would buy SIG for stock and A$700 million ($435.47 million) in cash, giving it a roughly 85% stake in the merged entity and a backdoor to list on the stock exchange

** After the deal got green light, Jefferies analysts said the merged company will give investors access to an excellent retail franchise

** Investment research firm Morningstar said it views the deal as strategically sound and transformational for Sigma, as it creates Australia's largest pharmacy chain backed by significant distribution infrastructure

** Morningstar also forecast the newly formed group to increase its underlying EBIT by around 13% on average over next five years

($1 = 1.6075 Australian dollars)

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(Reporting by Rishav Chatterjee in Bengaluru)

((Rishav.Chatterjee@thomsonreuters.com;))