Sigma Pharmaceuticals Essay

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AFF5250 Corporate Treasury Management Lecturer: Shrimal Perera

Sigma Pharmaceuticals Limited,
96 Merrindale Drive
South Croydon, VIC, 3136
Australia

Mr. Shrimal Perera
Lecturer, Monash University
900 Dandenong Road
Caulfield East VIC 3145

Dear Shrimal,

Attached is the report you requested on for the 19th of May
The report then puts forward two diverse strategies– one to enter into the Chinese pharmaceutical market via a joint venture and the other is to enter into a new market segment; biotechnology.

Finally the report then discusses which option put forth seems the most appropriate. To support these decision details of the projected costs, proceeds, funding decision, risk management, dividend policy and the financial summary of the company for the next three years is included.

We would be happy to discuss this report with you in the future in regards to any clarification that you may require.

Yours
2.1.2 History

It is a result of many mergers and acquisitions and still continues to grow in the same manner. Primarily Sigma Pharmaceuticals Limited is the result of a merger between Arrows Pharmaceuticals with Sigma Company Limited. Prior to the merge with Arrow Pharmaceuticals, Sigma Company Limited already consisted of Amcal; which it acquired in 1998, Guardian Pharmacy banner group acquired in 1997 as well as Herron Pharmaceuticals and Chemists’ Own both acquired in 2003. In 2003 Sigma Company and Arrows Pharmaceuticals merged, which resulted in Sigma Pharmaceuticals Limited.

2.1.3 Corporate Horizons, Objectives and Strategies

Sigma’s strategy involves being the most efficient healthcare service company in Australia. It aims to do so by being the leading pharmaceutical product manufacturer and marketer, and the most efficient pharmaceutical wholesaler in Australia (Sigma, 2008). It wishes to expand its pharmaceutical division, and market.

It is continually seeking new business opportunities to further develop and grow its business.

3. External Analysis

3.1 PEST