Australia''s biggest contract drugs maker, Sigma Pharmaceutical Ltd''s shares rose 3.7%, after the company announced that its annual profit would increase for the first time in three years.

Sigma, which announced its full year results for the year ending January 31 2008, forecast that net income of $88 million in the year ending Jan. 31, 2009 representing a 14% jump.

""The improved operating performance achieved in the second half 2007/08 is expected to continue in 2008/09, with EBITDA and EBIT expected to grow from 16% to 19% and from 14% to 18% respectively.

""The acquisition of Orphan Australia for $130 million, full-year impact of the $151.2 million share buyback, and higher costs of borrowing for all market participants will lead to significantly higher interest costs for 2008/09,"" said chief executive de Alwis.

The company said the growth would be underpinned by increased sales of generic medicines. Sigma released eight generic drugs under the Arrow brand last year and would start selling 20 more in 2008.

Sigma bought Arrow Pharmaceuticals in December 2005, gaining access to one-third of the $1.5 billion market for generic drugs in Australia, where demand for the lower priced medicines is growing at more than 12% a year.

Sigma announced for the full year ending 31 January 2008 profit after tax of $90.2 million on sales rise of 11% to $2.97 billion.

Allco''s share boosted by repayment extensions

Australian asset manager, Allco Finance Group Ltd''s share rose the most today after closing at 102.4% after two of its funds were granted more time to repay debts.

Bankers for Allco''s Rubicon Japan Trust and Allco Commercial Real Estate Investment Trust, agreed to extend maturity dates for the two entity''s loans and currency hedging arrangements.

Rubicon Japan today said that National Australia Bank Ltd had agreed to extend the maturity date for a loan and currency-hedging arrangements by a year to March 31 next year.

Allco Commercial said on March 20 it received approval to extend the maturity date for S$550 million of its bonds, two days after its credit rating was cut by Moody''s Investors Service.

Allco''s share jumped to 42.5 Australian cents at the close of trading after losing 93% of its value in the year so far.

Allco is trying to refinance $250 million of loans due May 1 by negotiating with its creditors while lenders are reviewing its ability to repay a further $900 million of debt.

Lihir bid for Equigold under threat from possible rival bids

Analysts have hinted that Lihir Gold Ltd could face stiff challenge for its $1 billion bid to buy Equigold NL.

According to a report compiled Credit Suisse Group, counter bids could come from the world''s second-largest gold producer, Newmont Mining Corp, Randgold Resources Ltd and AngloGold Ashanti Limited.

Randgold could step-up with a bid as it already had interests in the Ivory Coast and may want to strengthen it influence in West Africa. Equigold has projects in Australia and Ivory Coast. Equigold fell 0.9%.

Lihir offered 33 of its shares in exchange of 25 Equigold shares on March 20 to boost output by a quarter next year and increase gold reserves about 10%.

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