The new director of Sigma Pharmaceutical Limited (ASX: SIP) warned of a 12 month recovery period for the company.

Chief executive and managing director Mark Hooper is less than one month on the job but is optimistic of the year ahead. He said, “'I'm not sure if anyone would give us a big, warm round of applause for not having any debt on the balance sheet... I think the exercise we are going through at the moment is to look at what earnings we have post the Aspen sale.”

Hooper said the board remains to decide how much of the company's $819 million debt will be paid once Aspen Pharmacare takes over the pharmaceuticals operation. About $50 million is due for payment by the end of November and another $10 million by the end of next March.

Shareholders will vote on the sale of the pharmaceuticals division to Aspen come November. The pharmaceuticals unit has generated 20 percent of Sigma's sales and 40 percent of its pre-tax earnings.

The proceeds of the sale are likely to be used to reduce and restructure Sigma's on-balance sheet debt of around $290 million. A capital return of up to $200 million to investors is also being considered.

Sigma's half-year financial report showed a $218.5 million interim loss as a result of a previously flagged writedown on the value of the company's pharmaceutical business. The interim loss follows 2009's $389 million loss which was attributed to asset impairments and failed risk management procedures and disclosure.