24th Mar 2015 08:49
LONDON (Alliance News) - Skyepharma PLC Tuesday expressed confidence in its growth prospects for 2015, as it posted a widened pretax loss for 2014 despite seeing an 18% rise in revenue, primarily due to costs related to the repayment of bonds.
The drug development company said it expects "further substantial growth" in revenue in 2015 compared to 2014, mostly as a result of products it has launched in the last three years.
Skyepharma posted a pretax loss of GBP9.9 million, widened from a pretax loss of GBP1.0 million in 2013, as a rise in revenue to GBP73.8 million from GBP62.6 million, was offset by exceptional costs of GBP26.6 million related to the repayment of bond debt and the restructuring of its Lyon manufacturing site.
The company raised GBP112.0 million in April to pay off bonds early at a cost of GBP95.6 million, which Skyepharma said saved it GBP25.2 million compared to the total amount that would have been payable at the earliest normal redemption date of November 2017.
Skyepharma said revenue growth had been boosted by higher levels of milestone payments, growth in supply and royalty revenues from asthma treatment flutiform, higher sales of anaesthetic exparel, and a full year of rental income from the facility it leases to Aenova Holding GmbH.
The company said it expects its investment in research and development to increase to around GBP10.0 million in 2015. Additionally, as demand increases for flutiform the company will up investment in its manufacturing facility, and capital expenditure on this product will increase to GBP9 million from GBP7 million.
"The board is confident that the group has good prospects for growth from the 16 approved products already being marketed and is looking forward to adding further potential from Skyepharma's proven inhalation and oral drug development capabilities," the company said in a statement.
Shares in Skyepharma are trading down 1.6% at 318.88 pence Tuesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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