In August 2010 Aspen agreed to buy the pharmaceutical unit from Sigma for A$900m. Completion of the deal allowed Sigma to repay its debt facilities, pay a special dividend and concentrate on its healthcare division.

“With the business stabilised we can concentrate on re-invigorating our core operations, in both wholesale and retail. We have a clear financial model as we seek profitable growth”, said Mark Hooper, managing director of Sigma.

Revenues from the pharmaceuticals unit fell year-on-year by 13 per cent. For the second consecutive year the unit was impacted by goodwill impairment. The A$220m impairment in 2010 led to a loss before interest and tax of A$134.2m, down more than 30 per cent year-on-year.

On January 31 2011 ownership of the pharmaceutical unit transferred to South Africa-based Aspen. Acquiring the unit is intended to accelerate expansion in Australia and Asia Pacific.

Healthcare unit

Selling the pharmaceuticals division allows Sigma to focus on the larger healthcare unit. Revenues were up in 2010 and, with smaller goodwill impairment, the unit overturned the loss posted in 2009.

Sigma is looking to continue growth having completed its stabilisation phase. To keep up growth Sigma must predict and handle ongoing changes to the industry.

“While the industry fundamentals are still sound, more frequent and greater change should be expected”, said Sigma in a presentation of its full year results.

Shares in Sigma closed the day up 10.8 per cent.