Sigma expects rocky road
June 21, 2010
SIGMA Pharmaceuticals says
reforms outlined in last month’s
Federal Budget are “likely to place
additional pressure on operating
margins for the foreseeable future,”
according to the company’s new
chairman Brian Jamieson.
Speaking at the Sigma agm this
morning, he outlined
“disappointing” results for the
company’s generics business for
the first four months of the year
but said other areas of the business
had been “sound”.
Underlying net profit after tax was
down 15.5% due to strong pressure
in the generics market and a lack
of uptake of year-end promotions,
the company reported.
Jamieson also confirmed that
Sigma was planning to sell its
Herron brand of consumer products
along with “a number of other noncore
assets” to reduce debt.
Outgoing ceo Elmo de Alwis also
addressed the meeting, expressing
his disappointment at the
company’s big loss which led to
him tendering his resignation on 15
Apr after 33 years at Sigma.
However he reiterated his
continued confidence in the
business, saying he had taken his
full allocation of shares in last
year’s capital raising.
“I have never sold any shares in
Sigma,” de Alwis told investors.
De Alwis said he believes
passionately in the long term
success of the company and wished
his successor Mark Hooper and the
board “every success, as they
reaffirm Sigma as one of Australia’s
leading healthcare companies”.
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