SkyePharma on target for full year

Drug development firm SkyePharma said expectations for 2012 pre-exceptional operating profit remain unchanged and is confident of future trading as it launches its asthma treatment product flutiform across Europe.

SkyePharma cautioned that some contract development work has been delayed into 2013 but the effect is expected to be offset by lower costs.

Revenue and pre-exceptional profits will benefit from the €8m milestones following the launch of flutiform in Germany and the UK, the group explained.

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Meanwhile net profit will be affected by exceptional charges and additional finance costs related to the bond proposals and CRC Amendment.

"As anticipated, despite the receipt of milestones following the launch of flutiform in Germany and the UK, the group will continue to use cash in the second half of the year, due to half those milestones being paid to Paul Capital and the continuing investment in working capital to support the launch of flutiform," the group said.

Chief Executive Officer Peter Grant added: "The group's cash generative potential has been substantially boosted by five major product approvals and launches during 2012, with EXPAREL launched in the US; approvals and launches of Paxil CR and Requip Once-a-day in Japan; approval of RAYOS in the US; and the first approvals and launches of flutiform in Europe."

"On top of this we have renegotiated the group's debt to better align repayment obligations with this enhanced cash generative potential."

On June 30th 2012, the group had £11m of cash.

CJ