The share price of Sigma Pharmaceuticals Ltd. reduced significantly after it revealed its decision to offload its medical unit to South Africa's Aspen Pharmacare. The share declined by 7.7% to reach 48 Australian cents and this is the maximum it has declined since July 16.

Meanwhile, the Australian S&P/ASX 200 Index increased by 0.9% during the day.

The Company will be selling the drugs unit for A$900 million ($810 million). After the sale of this unit, Sigma will be left only with a single unit that comprises a wholesale and retail unit.

Experts stress that the sale of this unit will have a significant impact on the bottom lines of the Company and its growth in the business will be slower in the future. The deal is also not in the best interests of the shareholders of Sigma.

Sigma will use the money generated from this deal to pay off debts and reduce its liabilities.

In other market news, Telstra’s efforts to increase investment in customer service are being praised by the market. Experts feel that these efforts will pay off this year and Telstra will hope to benefit from these initiatives.

Experts feel that Telstra put a lot of pressure on TPG Telecom and iiNet with its competitive pricing strategy. However, some are of the view that it will be difficult for Telstra to make an impact on TPG due to the latter’s competitive pricing.