5th Mar 2009 13:40
SkyePharma Announces Start of Consultation Process on Potential Restructuring of its French Operations
LONDON, UK, 5 March 2009 -- SkyePharma PLC ("SkyePharma") (LSE: SKP) today announces that the management of its French subsidiary, SkyePharma Production SAS, Lyon, has entered into a consultation process with the Company's Works Council about potentially reducing its workforce of 129 employees by approximately one-third. The proposed reduction arises due to the long-standing under-utilisation of the French manufacturing facility. The proposed reduction would improve the competitiveness of the Lyon factory and if implemented as currently envisaged, is expected to save approximately €1.8m (£1.6m) of operating costs each year. The proposals are not expected to affect current manufacturing arrangements nor relationships with the Group's manufacturing partners.
Dr. Ken Cunningham, CEO of SkyePharma said, "We regret the need to propose this potential reduction in the workforce at our French manufacturing operations and, following consultation, intend to implement an appropriate social plan to assist any employees affected. However, changes are essential to ensure that we have the correct staffing for the forecast levels of demand. We will continue to constrain cash utilisation to ensure that we meet our goal of retaining cash resources that are sufficient to enable SkyePharma to reach its target of sustainable profitability."
For further information please contact:
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SkyePharma PLC |
Ken Cunningham |
+44 20 7491 1777 |
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Peter Grant |
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Financial Dynamics |
David Yates |
+44 20 7831 3113 |
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Jonathan Birt |
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About SkyePharma PLC
Using its proprietary drug delivery technologies, SkyePharma develops new formulations of existing products to provide a clinical advantage and life-cycle extension. The Company has twelve approved products in the areas of oral, inhalation and topical delivery. The Group's products are marketed throughout the world by leading pharmaceutical companies. For more information, visit www.skyepharma.com.
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