Africa’s biggest drug maker Aspen Pharmacare announced in May that it was planning to acquire Sigma Pharmaceuticals in a takeover offer worth $589 million. This deal would provide Aspen with an additional foothold in the lucrative Australian pharmaceutical market as a front line wholesaler and distributor of branded and generic products to pharmacies.
However, following a recent inspection of Sigma’ accounts the offer price may be dropped from the original $589 million, however this is to be confirmed. The reason for the downward revised offer is unclear, however it could be due to a plan by Sigma shareholders to sue the company for breach of continuous disclosure and misleading or deceptive conduct. In addition, Sigma has also announced that it could miss its annual profit forecast and a record loss in March.
Despite this there have been additional bidders recently from overseas drug and healthcare companies for Sigma’s Herron and Orphan Australia drugs business. However, their bids are dependent on Sigma’s negotiations with Aspen.
In the meantime Aspen Pharmacare has continued to remain active within the industry and has recently announced deals to purchase penems and penicillin injectable manufacturing facility in Brazil for $75 million from Strides Acrolab.
In addition, Aspen has also a manufacturing and supply agreement with Eli Lilly to produce generic versions of capreomycin for the treatment of patients with multi-drug resistant TB.
Together this deal demonstrates a determined commitment to remain at the forefront of the industry.