buy4 Feb 2011 22:59
SkyePharma's investment case depends on the EU approval of Flutiform - which is possible by Q3 - and centres on the product's subsequent achievement of our targeted 5% penetration of the European ICS/LABA market. In this scenario, we estimate the equity to have a fair value of 374p per share. However, the upside has to be considered alongside the fact that SkyePharma's convertible bonds will have to be refinanced by 2013, an event that may have a dilutive effect on equity.