Australian Pharmaceutical Industries (API) has lifted interim dividend 7.1% to 3.75 cents a share for the six months to February 28 after reported a steady underlying after-tax profit of $26.8 million.
Sigma Pharmaceuticals has rejected the offer from Australian Pharmaceutical Industries ((API)). The company has reiterated its view that there is potential on a stand-alone basis with identified cost savings of over -$100m.
Australian Pharma Industries ((API)) has increased its stake in Sigma to 12.95% and made a non-binding indicative acquisition proposal. API would own 63% of the combined entity and Sigma would receive 0.31 API shares and 23c cash for each share.
First half results were in line with guidance. The short-term outlook remains challenging, Credit Suisse believes, and PBS revenue is expected to be under pressure as some manufacturers choose to by-pass wholesale distributors, going direct to pharmacies.
Morgan Stanley observes challenging conditions in Australian retail have detracted from an otherwise reasonable first half result. Retail network sales were up 2% with comparable store retail sales up 0.4%. Gross profit grew 4.5%.