SIG - Sigma Healthcare

[PorscheACE]

Sigma Pharmaceuticals (SIP) today proposed a takeover bid for Australian Pharmaceutical Industries (API). Sigma is already the biggest pharmaceutical wholesaler and due to its recent merger with Arrow Pharmaceuticals (one of the largest generic pharmaceutical drug makers/distributors in the country) is in a perfect position to succeed. API own major brands like Priceline, Priceline Pharmacy, Chemworld, Soul Pattinson Pharmacy and not to mention they are the 2nd largest pharmaceutical wholesaler in Australia.

Personally think its a monster move...lets see what happens. Any thoughts people? Anyone holding either stock?

Not sure how accurate everything below is but definetely a takeover bid:

Sigma Offers A$566 Million for Australian Pharma (Update2)

By Vesna Poljak

Oct. 6 (Bloomberg) -- Sigma Pharmaceuticals Ltd., Australia's biggest contract maker of drugs, offered to buy Australian Pharmaceutical Industries Ltd., the nation's largest drugs wholesaler, for A$566 million ($422 million).

Sigma may bid A$2.20 a share for Australian Pharma stock, the Melbourne-based company said in a statement to today, without making a formal proposal.

Buying Australian Pharma would give Sigma an extra 14 Australian distribution centers serving about 2,500 customers, pharmacy brands including Priceline, Soul Pattinson and Chemworld, and control of about 215 drugstores in New Zealand.

``Merging the two companies would create significant shareholder value,'' Sigma said, citing ``strategic and cost synergies.''

Shares of Australian Pharma, which traded above the offer price at A$2.36 in Sydney today, have gained 45 percent since a record low of A$1.63 on Aug. 22, when they resumed following a six-week suspension because the company couldn't account for a A$17.2 million hole in its accounts.

Sigma approached Australian Pharma's board, offering cash or stock, it said in the statement. It wants to review Australian Pharma's accounts.

(SOURCED http://www.bloomberg.com/apps/news?pid=20601081&sid=aNkb2rOApP8g&refer=australia)

 

[Prospector]

I inherited SIP when they merged with Sigma a while back. Sigma had been doing OK. It has had its ups and downs since then but has recently been progressing in recent times. I guess it is a matter of bigger is better, but I really dont know too much about API

 

[PorscheACE]

API has gone through some hell recently! But it all makes sense for SIP to takeover API...3 Major pharmaceutical wholesalers in Australia...Sigma, Mayne and API...Mayne getting sick of the wholesale game and API just cant do it well...so lets see what happens...Sigma's been around forever so Im sure they will be ok...

Has anyone heard more on the takeover?

 

[mark_au]

Hi Guys

is it just me or since arrow and sigma merged the sigma price hasnt really done anything, Id have thought that with the synergies of the merger, they would be powering ahead.. is SIP broken :-(..... or does it have a future ??

 

[Garpal Gumnut]

Hi Guys

is it just me or since arrow and sigma merged the sigma price hasnt really done anything, Id have thought that with the synergies of the merger, they would be powering ahead.. is SIP broken :-(..... or does it have a future ??

Somethings up this morning, in a trading halt ? why.
Garpal

 

[wto23]

It wasn't that big a deal after all. I was anticipating a takeover.
Was it really necessary to have a trading halt??

Attached is the announcement.

 

[Nicks]

Ive recently bought in heavy to SIP. Why:

- Are the biggest player in the domestic generic drug market and intent on growing this organically further.

- Australia and the Western society is increasingly relying on pills, both prescription, non and therapeutic.

- They have good solid brands.

- Many of the drugs that boomed in the last 10-20 years are out or coming out of patent, and SIP will be making many of these.

- The Insitutions are Bullish on SIP.

- It pays a nice Dividend. This will give a nice bonus whie also is indicative of a stocks capital gains that follow.

- Management are now fully free to manage and grow the business.

- It has not yet recognised a strong share price gain to reflect all of the above, therefore expect this to come very soon.

Thanks

 

[quarky]

Ive recently bought in heavy to SIP. Why:

- Are the biggest player in the domestic generic drug market and intent on growing this organically further.

- Australia and the Western society is increasingly relying on pills, both prescription, non and therapeutic.

- They have good solid brands.

- Many of the drugs that boomed in the last 10-20 years are out or coming out of patent, and SIP will be making many of these.

- The Insitutions are Bullish on SIP.

- It pays a nice Dividend. This will give a nice bonus whie also is indicative of a stocks capital gains that follow.

- Management are now fully free to manage and grow the business.

- It has not yet recognised a strong share price gain to reflect all of the above, therefore expect this to come very soon.

Thanks

good reasons.
but i'm not listening to them. why?
because i bought them last week, already.

@ $2.57

 

[quarky]

a lot of stocks are down today.
but SIP has open lower, ie. $2.52
so, it's on the slide (?)

wondering if there's going to be announcements about this stock

 

[wto23]

With the market strong today SIP again saw a considerable drop and with huge volume.
Anybody here shed some light on this?

This is stock I've been watching for a while and one of which I see strength and a good defensive stock to dip into.

 

[jchan86]

i just moved in as well

nice 2.40 support level. the key areas revolve around patents and IP

examine what happened in the drug/pharmeceutical industry about 15-20 years ago.... interesting times ahead

 

[Jikx]

I just got in on it too.. either there's some information leaking, or the market is not taking into account the huge block-buster drugs that are going generic in the future..

 

[Kieran]

What price did you get in at Jikx? Current price is $2.41, I'm tossing up whether to get into SIP or increase my tiny holding in Lynas (LYC)

 

[Jikx]

$2.42, so I'm 1c down per share. I don't think SIP is a short term holding, definitely medium to long term.

 

[reece55]

$2.42, so I'm 1c down per share. I don't think SIP is a short term holding, definitely medium to long term.

And here we have it, my all time favorite quote........

Personally, SIP is looking a bit sick to me. I actually traded this one a few weeks back for a potential break into a wave 1 (don't have the count with me, it's at work), but got stopped out for a small loss. For what it's worth, to me it has broken support and in the short to medium term, the least path to resistance is down.......

However, I wish you the best in your trade. But I wouldn't let a stock dictate the timing of your holding - rather ask yourself the question what kind of an investor are you - long or short term? If you are indeed long term, review the chart, set your stop and run with it........

Cheers

 

[smoothsatin]

And here we have it, my all time favorite quote........

Personally, SIP is looking a bit sick to me. I actually traded this one a few weeks back for a potential break into a wave 1 (don't have the count with me, it's at work), but got stopped out for a small loss. For what it's worth, to me it has broken support and in the short to medium term, the least path to resistance is down.......

However, I wish you the best in your trade. But I wouldn't let a stock dictate the timing of your holding - rather ask yourself the question what kind of an investor are you - long or short term? If you are indeed long term, review the chart, set your stop and run with it........

Cheers

Hi guys,

SIP could be ready for a turnaround, may have double bottomed at 2.25 last week, and very strong volume since. If it does break that downward sloping resistence, or at least has its next low higher than 2.25, could be a good time to get in........ideally would like to see continued volume and breaking of resistence first....

 

[Jikx]

You guys love technical analysis don't you! Doesn't really do it for me however. I just like the company because it has substantial exposure to the generics business and there will be quite steady growth in that area for quite some time. If there are no shock earnings reports, the downside risk will be very limited.

 

[reece55]

You guys love technical analysis don't you! Doesn't really do it for me however. I just like the company because it has substantial exposure to the generics business and there will be quite steady growth in that area for quite some time. If there are no shock earnings reports, the downside risk will be very limited.

Yep, absolutely love it, but personally thats because I find i trade a hell of a lot better with it, just my view.

My accounting view on this stock - these guys have performed super well for a very long time, they have the lions share of the generic drug sector and a chemist chain to distribute the drugs, so long term it will perform. All areas of fianancial performance gets a tick. They are however a little expensive P/E wise, especially considering that I would have thought it will be hard for them to grow without expanding via M&A activity and they will pay a high premium in this market to do it.

Always bare in mind however that fundamentals and technicals can have a significant time lag and other risks can affect stocks. If you are a fundamentalists, then this is a great stock to be in - I just don't like it short term....

Cheers

 

[quarky]

argh...Sigma goes down to $2.14 today. i bought it at $2.50
guess i'll have to sell it for a loss for tax-time.


Sigma won’t force Symbion deal
Wednesday, June 27, 2007


Sigma Pharmaceuticals will not pursue legal action to force the Symbion Health board of directors to consider an offer for the company's consumer health and pharmacy business that was lodged after a bidding deadline.


Readers of the Fair Margin column on this site were told that Sigma was unlikely to pursue legal action.

Fair Margin noted that a Sigma bid for Symbion Health's business would face a series of hurdles, including Australian Competition and Consumer Commission approvals and the possibility of defections from members of the Symbion pharmacy banners, Chemmart and Terry White Chemists.

With Sigma not pursuing its late bid for the Symbion Health businesses, a $2.8 billion by Healthscope will now be assessed by the ACCC.

Healthscope wants to acquire Symbion Health's medical services businesses and its takeover offer involves the on-sale of the consumer health and pharmacy business for $1.085 billion to private equity firms, Ironbridge Capital and Archer Capital.

One of the features of this site, Fair Margin provides a weekly commentary on retail events and issues, often providing readers with the news behind the news.

 

[quarky]

even more woeful news for me,.. share price is at $1.76
(i'm losing 30%!)



Shares in Sigma Pharmaceuticals have tanked in opening trade after the company cut its full-year earnings forecast. In a bid to soften the news, Sigma also announced an on-market share buyback of nearly 10 percent of its issued shares. Sigma said it expected earnings before interest, tax, depreciation and amortisation (EBITDA) to increase by 5 percent for the full year ending Jan. 31, 2008. It expected underlying net profit after tax for 2007/08 to be in line with the previous financial year, excluding the interest impact associated with the buyback. Shares in Sigma have tumbled 15.33% to $1.79 and a half cents.