Sonic Healthcare's expansion in North America has been temporarily set back by the provincial government of Alberta's decision not to proceed with a proposed major contract.
The government of Alberta last year selected Sonic as the preferred company to enter into a contract to provide pathology services in Edmonton, Canada.
Sonic had said in October 2014 that the contract, with an anticipated term of 15 years, would initially generate annual revenue of more than $C200 million.
Sonic had described its selection as preferred proponent of the Alberta contract as another important milestone in the group's international growth and a very significant, strategic expansion opportunity.
Sonic said on Friday that the new health minister in Alberta has decided to review the options for the future provision of laboratory services in Alberta.
Sonic would seek to take part in the review and explore options for involvement.
"This news is clearly disappointing, however Sonic's stakeholders can remain proud that Sonic was chosen by Alberta Health Services as the preferred proponent ahead of some of the largest and best known laboratory companies in the world," Sonic chief executive Dr Colin Goldschmidt said on Friday.
Sonic said no contribution from the proposed contract had been included in Sonic's earnings guidance for fiscal 2016, which was released to the market in July.
Shares in Sonic closed 23 cents lower at $20.25.
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