DRUG maker and distributor Sigma Pharmaceuticals has reported a $389 million loss for its financial year ending 31 January.
The loss compares with a net profit of $80.12 million in the prior corresponding 12 months.
Sigma said the loss was driven primarily by a non-cash impairment of goodwill of $424.23 million.
"The carrying value of the group's goodwill was reassessed in light of a progressive deterioration in competitive conditions and a changing regulatory environment," Sigma said in a statement on Wednesday.
"The full impact and force of these changes affected the industry and the company particularly in the last months of the year.
"The change in competitive conditions and the industry impact of new regulations have directly and negatively impacted the short- and long- term growth rates for our health care and pharmaceutical businesses."
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Sigma also said the synergies expected from the merger of Sigma Pharmaceuticals and Sigma Company Ltdin 2005 had not been achieved.
"The future cash flow forecasts were revised and an impairment was taken against goodwill."
Sigma on March 22 said its annual results would be postponed by one week to give it more time to prepare its results.
At the time the company said increased market pressures, especially in its generic drugs business, had led to a fall in its cash flow forecast.
The reduction in expected cash flows and changes to Sigma's estimated cost of capital were likely to result in a material reduction in the carrying amount of goodwill on the company's balance sheet.
Sigma shares have been in a trading halt since February 25, pending the announcement on revised earnings guidance and last traded at 90 cents.
Sigma said today that it would not pay a final dividend.
The company reported a loss of $263.17 million on earnings before interest, tax depreciation and amortisation (EBTIDA) compared with $234.99 million in the pior year.
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