Skyepharma 2015 revenue to be ahead of expectations

11th Jan 2016 08:19

(ShareCast News) - Skyepharma said on Monday that its full year revenues for 2015 are likely to be ahead of previous expectations thanks to a milestone payment.The oral and inhalation drug company said its license partner, Mundipharma, has agreed that the first sales milestone of €10m (£7.4m) for its flutiform asthma treatment will now be recorded in that year.This will be through the release of deferred income and no cash will be received as it will be used to meet a large part of the balance of Mundipharma's right to recover up to €25m of previous development costs.Skyepharma said the group's cash and cash equivalents as at the end of December was around £41m and net cash was approximately £35m.Cash generation in the second half of the year benefited from a robust operating performance and the later timing of payments for capex projects, which remain on track.Chief executive officer Peter Grant said: "Skyepharma has performed well in 2015 with robust growth of flutiform and increasing contributions from EXPAREL and the GSK Ellipta products, which have resulted in significant revenue growth and cash generation."We have also made substantial progress with our pipeline. This was demonstrated by the recently announced feasibility and option agreement with Mundipharma in respect of the triple combination respiratory product, SKP-2076."At 0825 GMT, shares were up 2.7% to 402.75p.