The now former Sigma Pharmaceuticals
(ASX:SIP) chief executive Elmo de Alwis says the reason he quit yesterday was that he wanted to take responsibility for the company not doing what it said it would.
Today’s Financial Review Newspaper is reporting that Mr de Alwis said his resignation is about responsibility rather than blaming Sigma’s financial problems on industry funding reforms or the Pharmaceuticals Benefits Scheme.
The drug maker and distributor is in turmoil after announcing a $389 million loss this month and $424 million in asset write-downs. It’s also facing a class action and possibly an investigation by regulators.
AFR also reports claims that Sigma knew of its financial problems months ago before it informed the market and that recently it changed its usual practice of booking in sales in advance to meet monthly target and instead some sales weren’t completed.
Mr De Alwis told AFR that he wasn’t pushed to resign and that he believes a fresh set of eyes at the company will be good.
Sigma Pharmaceuticals posted a $389 million loss in 2010.
