Sigma Pharmaceutical (SIP) will go ex dividend on 16/10/2009. The current dividend payment is 3 cents and it is 100% franked. The record date is 22/10/2009 and the dividend will be paid on 13/11/2009. Based on the full year payment the dividend yield is 6.5%.
*Current Yield: 2.9% Franking: 100% DRP Discount: 2.5%
*Yield has been calculated on the closing price on the 25/9/2009. Current yield is based on the current dividend payment only.
Sigma Pharmaceuticals Limited (SIP) today announced that it has entered into an agreement to acquire an established pharmaceutical brand portfolio and manufacturing facility from Bristol-Myers Squibb (BMS) for a consideration of A$60 million in cash. The Acquisition is expected to meet Sigma’s stated NPV and investment objectives and is expected to be EPS accretive in the first full year of ownership. As part of the Acquisition, Sigma will acquire the right to manufacture, market and distribute 15 ethical pharmaceutical and healthcare brands in Australia and New Zealand, including well recognized brands such as Lipostat and Pravachol; the right to export a majority of the acquired brands to New Zealand; and a modern pharmaceutical manufacturing facility located in Noble Park, Victoria.
Commenting on the Acquisition, Sigma Managing Director and CEO Mr Elmo de Alwis said, “The Acquisition from BMS is consistent with Sigma’s stated strategy of investing in and growing its branded prescription portfolio. The acquired brands are well recognised originator brands with established positions in large market segments. They are a strong fit with existing Sigma brands, further broadening Sigma’s existing product offering to the pharmacy channel.” He added “The Acquisition allows Sigma to capitalise on its proven ability to sustain the market presence of well known brands and to build on its strong track record of acquisition of brand portfolios from GlaxoSmithKline, Wyeth and Abbott.”
Sigma and BMS will also enter into a toll manufacturing agreement for a period of up to five years, under which Sigma will be engaged by BMS to contract manufacture certain pharmaceutical products for BMS for distribution in overseas territories. This additional contract manufacturing adds BMS to Sigma’s impressive portfolio of contract manufacturing customers including GlaxoSmithKline, Sanofi-Aventis and Bayer. The acquisition of BMS’ modern pharmaceutical manufacturing facility in Noble Park at below replacement cost will further boost Sigma’s overall manufacturing function and capability. The acquired brand portfolio and manufacturing contracts currently generate annual turnover of approximately A$50 million (comprising A$33 million from acquired brands and A$17 million from contract manufacturing). Sigma estimates that the EBITDA contribution from the Acquisition in the year ending 31 January 2011 will be A$15-17m .
