Plans to raise £112m in capital to pay off bond debt and strengthen product pipeline
SkyePharma, a UK developer of oral and inhalation drug delivery products, saw revenue rise by 25% to £62.6m (2012: £49.9m) to 31 December 2013, primarily due to growth in sales of asthma treatment Flutiform, increased contract development, and the Group’s share of higher net sales of Pacira Pharmaceuticals’ analgesic Exparel.
The company reported an 8% higher operating profit of £13.6m (2012: £12.6m) and expects further substantial growth in revenue in 2014. Pre-tax loss was £1m, narrowed from a pre-tax loss of £10.4m in 2012.
Since the year end, Flutiform has been launched in France, the Czech Republic and South Korea, and approved in Spain.
SkyePharma said it plans to raise £112m in capital to pay off bond debt and to increase the Group’s capacity to strengthen its product pipeline.
Peter Grant, Chief Executive, said 2013 was another year of 'increasing momentum'.
'As well as further launches in major markets of Flutiform, along with a number of approvals and a growth in sales of existing products, the approval of GSK’s Relvar Ellipta/Breo Ellipta and Anoro Ellipta, which use one of Skyepharma’s dry powder inhalation technologies licensed to GSK, gives the Group potential income of up to £9m per annum for the life of the patents,' he said.
It also brings the total number of products launched or approved in major markets to seven over the past two years from which the Group is eligible for revenues under long-term agreements.
'The combination of further launches and product approvals and the planned reduction of debt through the proposed capital raise significantly improves the Group’s outlook and sets the stage for further growth,' added Grant.