Sigma rejects revised offer from Aspen

Melbourne biotech Sigma Pharmaceuticals has assured shareholders that it is trying to negotiate a better deal than the revised $0.55 a share offered for the company by South African generics producer Aspen Pharmacare Holdings.

The original offer was for $0.60 but was reduced in the light of poor financial data from Sigma last month.

In a letter issued to the ASX today company secretary Sue Morgan Dethick said that Sigma was focussed on having a number of conditions proposed by Aspen removed, but urged this did not mean it was satisfied with the revised price, which values the company at $700 million. Aspen has however indicated that it is running out patience.

One of Australia’s oldest pharmaceutical companies Sigma owns a number of household retail brands including Amcal, Guardian and the Amcal Max brand. However, it recently fallen on hard times, posting a $389 million loss for the year ending January 31, 2010.

Last month it revealed that its generics business was $6.4 million under budget, leading some analysts to downgrade the company from neutral to underperform.

Sigma’s shares closed today at $0.45.