Sigma acquires Bristol-Myers Sqibb’s brands
07 Sep 2009
Australian drugs maker and distributor Sigma Pharmaceuticals said today that it is acquiring some pharmaceutical brands and a manufacturing facility from Bristol-Myers Sqibb (BMS) for around $60 million, and seek to raise $297 million through the issue of new shares.
New shares will be issued at $1.02 each under one-for-three fully underwritten renounceable rights issue to fund the acquisition and reduce Sigma's gearing.
The issue price represents a 16 per cent discount to Sigma's closing share price on September 4, 2009.
As per the deal, Sigma will gain the right to make, market and distribute BMS's 15 brands, including Lipostat and Pravachol, in Australia and New Zealand, and will acquire a pharmaceutical manufacturing facility at Noble Park in Victoria.
The company will also have the right to export most of the acquired brands to New Zealand.
Sigma chief executive Elmo de Alwis said the acquisition was consistent with Sigma's strategy of investing in and growing its branded prescription portfolio.