Sigma boss eyes new CEO role after shock exit

Outgoing Sigma healthcare boss Mark Hooper says he’s in the market for a new chief executive role after a surprise decision to stand down from the pharmaceuticals operator after 11 years.

Shares in the $715 million owner of pharmacy brands Amcal and Guardian fell as much as 3.6 per cent on Monday morning after the company confirmed Mr Hooper’s resignation.

Sigma Healthcare CEO Mark Hooper said the time was right to hand the Sigma business over to a new leader. Credit: Darrian Traynor

The timing of the departure came as a shock to investors after Mr Hooper, just weeks ago, unveiled a strong set of full-year numbers for Sigma, returning to a profit of $59.8 million for 2021 compared with a $12.3 million loss a year prior.

It came after a lengthy transformation program that cut costs by $100 million, as well as large investments in new distribution centres.

Mr Hooper told The Age and Sydney Morning Herald he had been waiting for the company to be stable after years of restructuring before he felt he could leave the business.

Asked whether he had another job lined up, Mr Hooper said he would be considering his options over the next six months and would like to take on another chief executive role.

He said his overhaul of the Sigma business would make him well suited to the private equity space, “but equally, I would be attracted to a public company role as well”.

“I like and have enjoyed running a business and taking people on that journey ... this gives me a bit more freedom to have those conversations [about future roles] openly over the next six to seven months,” he said.

He will leave the business in October.

Mr Hooper was at the helm when Sigma walked away from its distribution contract with Chemist Warehouse over the terms the discount pharmacy chain was demanding. The decision saw Sigma shares decline 40 per cent in a single day.

Sigma was later able to renegotiate a contract with Chemist Warehouse for consumer goods products. Mr Hooper said on reflection, he believed ending the agreement was the right decision and that having the new consumer contract in place was a good thing for both Sigma and Chemist Warehouse.

“The way it has ultimately played out has been a good outcome for Sigma,” he said.

Managing director of Sigma’s largest shareholder Allan Gray, Simon Mawhinney, said Mr Hooper’s decision came as a surprise but it was good to see him serve out his notice period to ensure stability during the leadership transition. “It’s not a particularly crazy point in the company’s journey to hand the reins over,” Mr Mawhinney said.

“This is normal, this is how things happen and having met some of the executives at Sigma over the years in the recent past, I think this is unlikely to be that disruptive.”

Sigma shares were 2.2 per cent lower to 67.5¢ at 2.30pm.

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