Skyepharma shares gain on first half swing to profit

26th Aug 2015 11:45

(ShareCast News) - Shares in drug delivery company Skyepharma rose after the company swung to profit in the first half of the year.Skyepharma, which specialises in oral and inhalation products, said its pre-tax profit was £9.1m, compared with a £17.7m loss in the same period last year.Shares in Skyepharma rose by 9.07% to 291.50p at 1202 BST.Revenue was up 19% at £40.8m from £34.4m, which the company said was due to strong sales of its flutiform inhaler, and record sales of other products.Skyepharma said underlying trading was expected to be ahead of previous expectations, off continued "substantial" revenue growth in 2015.Revenues would be driven by sales of flutiform, EXPAREL and the GSK Ellipta-range of products, the company said.Production capacity of flutiform would be scaled up Skyepharma said, adding it was on track to improve balance sheet flexibility and reduce financing costs.FinnCap said Skyepharma was a "growth stock with defensive characteristics" and initiated coverage at 'buy' with a price target of 351p."With a clear trajectory of sustained and growing revenues from approved drugs that are in the early phase of their launch, a positive and growing EBITDA, a strong balance sheet and a pipeline of development programmes offering out-licensing opportunities, we believe Skyepharma is a key holding in the sector," FinnCap analyst Michal Cabadaj said.N+1 Singer said Skyepharma had a highly attractive offering and remained "extremely upbeat".