Sigma Pharma slumps to a six-week low, as proposed buyer Aspen looks set to lower offer price for the firm

As South African drugmaker Aspen Pharmacare's extended exclusivity period for review and due diligence with respect to its proposed takeover of Australia's Sigma Pharmaceuticals came to an end yesterday, and the latter's share price fell to a six-week low, speculation came to the fore that Aspen would lower its non-binding offer price of A$0.60 a share (around $1.2 billion in total including debt; The Pharma Letter May 24).

Aspen, Africa's largest drugmaker, has told Sigma it wants to continue the review after the exclusivity period expired, but has made no formal offer, the Melbourne-based company said in a statement. Sigma continues to recommend that shareholders take no action at this time, the firm said on a web site posting yesterday. A plan by Sigma shareholders to sue the company is also weighing on the bid and price, said Stuart Roberts, a health care analyst at Southern Cross Equities in Sydney, quoted by Bloomberg.

Complex problems at Sigma