Sigma Pharmaceuticals
(ASX:SIP) has defended its disclosure of events that led to a nearly half a billion dollars in goodwill write-downs on its balance sheet.
It follows questions by the Australian Securities Exchange which asked the healthcare company when it became aware of a reduction in goodwill as well as a potential breach of borrowing covenants.
Sigma has said that it first became aware of the write-downs and a breach to covenants attached to its borrowing facility around mid-March, shortly before it released an update to investors.
More than $500 million was wiped off Sigma's market capitalisation after it reported a $389 million full year net loss and a write-down of $424 million at its full year results last Wednesday, blaming poor trading conditions in the generic drugs market, particularly in the final quarter of the year.
Industry insiders are believed to be unimpressed with Sigma’s response to the ASX.
Sigma Pharmaceuticals reported a net profit of $80 million in 2009.
