Australia-based Sigma Pharmaceuticals has cut its full-year profit forecast by up to 46% following increased competition in the generic-drug trade.

The company said that performance in the generics division remains below budget and that competition is intense. Sigma added that believes this was due to “suppliers seeking market share in anticipation of substantial future growth” within the market.

Net income is now expected to reach between A$43m ($37.8m) and A$47m ($41m) in the year ending Jan 2011, with the company also expecting to miss its earnings target following forecasts similar to the A$80.1m reported for 2009.

Aspen Pharmacare, Africa’s biggest drug manufacturer, recently made a takeover bid for Sigma, but has since reduced its bid after examining Sigma’s accounts.