2020 CEO Survey: Mark Hooper, Sigma

The more we can boost productivity, the greater and longer lasting the benefits to the economy, says Sigma chief Mark Hooper.

Sigma Pharmaceuticals CEO Mark Hooper in Melbourne. Picture: David Geraghty for The Australian.

What are the three enduring lessons or changes to flow from COVID-19?

I think across a range of industries COVID-19 showed the ability of business to step up to help and work closely with the community when required. In the pharmaceutical sector, we had to mobilise quickly and in a safe way to ensure we were able to continue delivering all the essential medicines required to support patients through Australia’s community pharmacy network — amid state/territory border closures, quarantine protocols, panic buying and the like.

The other big change is obviously workplace flexibility. While working remotely or from home was a necessity for a vast number of Australians during the pandemic it will be interesting to see how it plays out in the medium and longer term. I don’t think it’s as straightforward as some are expecting but what’s not in question is we’re not going back in terms of traditional workplace arrangements.

How would you rate the shape of the Australian economy as we head into the new year?

Patchy, particularly in Victoria which obviously got off to a slower restart, but overall it is showing signs of resilience. It’s too early to be certain of what sort of economy we will have in 2021, especially when we still don’t know the true impact of what happens when the JobKeeper and JobSeeker measures end in March 2021.

There is clearly pent-up consumer spending demand, but we also need to see underlying unemployment rates come down. The additional injection of funds from government budgets at both the federal and state levels will help. The success or otherwise of a vaccine will also be crucial in supporting consumer confidence.

What three reforms are needed to sustainably grow the economy?

There is an opportunity, with the cost of government borrowing so low, to further boost infrastructure spending, and you can see that starting to play out. The more we can boost productivity, the greater and longer lasting the benefits to the economy. That must be underpinned by better transport infrastructure that can more efficiently deliver the necessary goods, including vital medicines.

What are the three best growth opportunities for your company in 2021?

Sigma has the newest and most efficient pharmaceutical distribution centre network in Australia with significant capacity to take on new business, so we look forward to seeing strong organic growth in the wholesale distribution part of our business.

Second we see opportunity in the ongoing and sustainable supply of medical equipment and consumables, which are critical to a safe operating environment for front line health workers in particular.

What impact will digital transformation have on your company?

Sigma was at the forefront of embracing e-scripts, which is a significant digital transformation for our industry, as well as pharmacies establishing home delivery of medicines during the pandemic, both of which will have a long-term impact on how customers can both access and better manage their medications.

Sigma is also invested in Doctors on Demand, providing telehealth services to supplement GP accessibility for patients where their regular GP is unavailable. Sigma is also investing significantly in its own IT transformation to provide far greater data capability and insights.

How would you rate business, state and federal government performance this year?

In very challenging conditions, I think governments across Australia have generally performed strongly in the face of a pandemic, especially compared to international experiences. There have obviously been a few challenges but hindsight can be a tough judge in these sorts of circumstances.