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LONDON (Alliance News) - Skyepharma PLC said Thursday its prospects for the year remain in line with its own expectations, forecasting revenue growth in the second half, as it posted a widened pretax loss in the half year to end-June.
The pharmaceutical firm recorded a pretax loss of GBP18.1 million in the recent half, widened from GBP1.6 million in the same period the previous year, despite seeing revenue rise to GBP34.4 million from GBP31.3 million and cost of sales fall, due to an exceptional loss of GBP25.5 million relating to the settlement of bonds.
In April the company raised GBP104.2 million through a share issue to settle outstanding bonds at a discount of GBP25.2 million. It reported an exceptional GBP25.1 million loss on this settlement, representing the difference between the GBP95.6 million to repay the bonds early and their book value of GBP70.5 million. It also paid GBP400,000 in transaction costs.
Revenue growth was driven by further launches of its flutiform inhaler, further launches of GlaxoSmithKline PLC products utilising its technology, and a USD8.0 milestone payment from the sale of Pacira Pharmaceuticals Inc's Exparel pain relief product. This helped to partly offset lower sales of products from its Lyon manufacturing facility.
Looking forward, Skyepharma said its acquisition of a respiratory therapy platform from Pulmagen, and the beginning of developing its SKP-2075 treatment for chronic obstructive pulmonary disease were keys steps to strengthening its pipeline.
Skyepharma cautioned that it may incur an exceptional reorganisation cost in the second half of the year, for its share of reorganisation at the the Lyon facility, if this is implemented.
Aenova France SAS manages and is responsible for the facility, and is in negotiations with the works council over a site restructuring plan. Skyepharma noted that "having largely exhausted the process to identify third party interest in taking over the facility", it is reviewing options to add additional work ahead of the manufacturing business reverting to Skyepharma when its lease with Aenova terminates.
Shares in Skyepharma were trading down 1.6% at 248.94 pence Thursday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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