Sigma Healthcare has rejected an indicative takeover offer from rival Australian Pharmaceutical Industries (API),saying the offer is not in the best interest of shareholders.
Sigma Healthcare chief executive Mark Hooper says the pharmaceuticals group"absolutely"has a future as a stand alone company - if it is unable to reach suitable merger terms with Australian Pharmaceutical Industries (API).
The backers of the bid for pharmaceutical giant Sigma Healthcare are confident the competition regulator won't knock back their takeover offer for the second time.
Sigma Healthcare shares have slumped after the pharmaceuticals supplier revealed a slump of more than 50 per cent in first-half profit to $13.4 million.
Mark Hooper had $19m worth of non-recourse share loans with Sigma before the big stock plunge.
Australia's pharmacy industry,already battling lower margins,is bracing for the digital disruption that has upended scores of industries before it.
The company's largest investor has warned against rushing into new investments to plug an earnings gap.
Sigma’s chief executive Mark Hooper described the loss of the contract as"an important pivot point for Sigma".