Skyepharma warns flutiform(R) revenues to drop in second half

10th Oct 2013 10:04

Shares in Skyepharma, a drug delivery company, lost around five per cent of their value after the group admitted revenues from the supply of its flutiform(R) product are expected to be lower in the second half of the year. flutiform(R), which is used in the treatment of Chronic Obstructive Pulmonary Disease (COPD), has generated the company a number of milestone payments after being approved in 21 countries and launched in 12. Further launches are expected in 2013/14, the group said. More generally, the group said that, as expected, second half revenue has been higher, and cash at the mid-year point totalled £18.8m. As anticipated, there will be a net cash outflow in the second half due to debt and interest payments and the continuing investment in working capital and scaling up of the manufacturing processes for flutiform(R). The group also said that it has received "encouraging advice" from the Food and Drug Administration on the regulatory pathway for SKP-1052, an oral investigational product applying the group's technology for the treatment of nocturnal, insulin-induced hypoglycaemia in patients with diabetes mellitus. Skyepharma is actively seeking a partner to fund further development, it said.Peter Grant, Chief Executive Officer of Skyepharma, said: "Positive momentum has continued since we announced our interim results in August, including the approval of flutiform in Japan, its continued roll out in European markets and the decision by our marketing partner, Mundipharma, to initiate a clinical study for the treatment of COPD. "The approvals of GSK's BREO ELLIPTA/RELVAR ELLIPTA in the US, Canada and Japan have further strengthened the expected flow of royalties from Skyepharma's inhalation technologies. We look forward to continued progress with flutiform in a number of key markets, including work to complete pricing discussions in France and Kyorin's planned launch in Japan."With six major product approvals and launches in the last 18 months, Skyepharma has a strong platform for future growth from which to generate new development opportunities, both organically and with industry partners."NR