Sigma Pharmaceuticals Ltd announced in a statement to ASX today it has received a non-binding, indicative and conditional takeover proposal of $0.60 per share.

The undisclosed bidder proposed to acquire all of the issued share capital of Sigma under a scheme of arrangement or other whole of business transaction.

Sigma general counsel and company secretary Sue Morgan-Dethick said the company Board is considering the proposal and recommends shareholders to take no action at this stage.

The announcement came after Sigma chairman Dr. John Stocker announced his retirement following the company's annual general meeting on June 21. Non-executive director Doug Curlewis has also decided to leave the board after the meeting.

Last month, Sigma chief executive Elmo de Alwis resigned in the wake of criticism after the company reported a massive $389 million loss for the year to January 31, 2010. His resignation was followed by Sigma chief financial officer Mark Smith.

Sigma says it is confident of improving cash flow and reducing debt in its financial year 2011

Sigma Pharmaceuticals Limited is a leading Australian manufacturer and marketer of prescription, over-the-counter and generic pharmaceutical products.

Sigma shares last traded at 35 cents.