31st Mar 2014 08:14
LONDON (Alliance News) - Skyepharma PLC announced Monday it has raised GBP112 million from a share placing to reduce its debt, while posting a narrowed pretax loss for 2013 on strong sales of asthma-inhaler flutiform.
Skyepharma posted a pretax loss of GBP1.0 million, narrowed from a pretax loss of GBP10.4 million in 2012. Revenue rose to GBP62.9 million from GBP49.9 million, and the company also had posted a GBP15.4 million exceptional loss in 2012 from a bond restructuring.
Revenue growth was driven by Skyepharma's flutiform, which saw its first full year of sales in some countries and new launches in Japan and Europe during 2013.
The company also saw strong growth from post-surgical paint relief product Exparel, owned by its former injectibles business Pacira Pharmaceuticals Inc. Skyepharma receives 3% of sales from Exparel, and potential milestones of up to USD52 million.
Flutiform has been launched in 15 European countries, Japan, Australia, Hong Kong and South Korea as of last week. Flutiform is on track to move into positive gross profit during 2014, Skyepharma said.
GlaxoSmithKline PLC's Relvar, Ellipta/Breo, Ellipta and Anoro Ellipta treatments, which use one of Skyepharma's dry powder inhalation technologies, were approved during the year which could lead to a potential income of up to GBP9 million per year for the life of the patents, Skyepharma said.
The company said that further product launches and approvals, combined with its planned reduction of debt, improves its outlook and "sets the stage for further growth."
Skyepharma raised GBP112 million through the issue of 58.7 million shares at an issue price of 191 pence with institutional investors, which it said represents a 4.3% discount to the company's closing price of 199.5 pence last Friday.
Skyepharma's shares were trading up 17% at 235.00 pence Monday morning.
It said it intends to use the majority of the proceeds to redeem bonds early, with the remainder used for general corporate purposes. This will allow it to pay off the bond debt at a discount of GBP25.2 million, Skyepharma said.
By removing the bond debt from its balance sheet, the company will be able to strengthen its pipeline with new oral and inhalation products and technologies, it said, which it may develop on its own, with partners, and with targeted in-licensing or acquisition.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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