LONDON, Sept. 28 /PRNewswire-FirstCall/ -- Operating highlights -
US approval and launch of Triglide(TM) (fenofibrate) - New
agreement with GlaxoSmithKline on Paxil CR(TM) - Paxil CR(TM)
returned to US market 27 June - DepoDur(TM) granted conditional
approval in UK - DepoBupivacaine(TM) licensed to Mundipharma for
all territories outside North America and Japan - Foradil(R)
Certihaler(R) approved in Germany and launched by Novartis -
Pulmicort(R) HFA-MDI filed by AstraZeneca in first European market
Financial highlights - Revenue up 3% to 36.0 million pounds
Sterling (2004: 35.1 million pounds) - Royalties 33% of total
revenue, up 17% to 12.0 million pounds (2004: 10.3 million pounds)
- Gross profit down 9% to 21.4 million pounds (2004: 23.5 million
pounds) - R&D down 24% to 10.9 million pounds (2004: 14.4
million pounds) - Operating loss before exceptionals down 82% to
0.3 million pounds (2004: 1.6 million pounds) - Operating loss
after exceptionals up 0.2m pounds to 0.3 million pounds (2004: 0.1
million pounds) - Deferred income down by 0.9 million pounds to
13.2 million pounds (as at 31 December 2004: 14.1 million pounds) -
Loss for the period up 7% to 9.3 million pounds (2004: 8.7 million
pounds) - Loss per share 1.5p (2004: 1.4p) - Net cash 19.0 million
pounds (as at 31 December 2004: 15.3 million pounds) - Announcement
of rights issue, raising 35 million pounds of new money Michael
Ashton, Chief Executive, said: "The first half of 2005 has seen a
number of significant achievements including the approvals and
subsequent launches of two important products, Triglide(TM) in the
US and Foradil(R) Certihaler(R) in Germany, its first major market.
We have appointed the first licensee for DepoBupivacaine(TM) on
terms which will largely fund its development. I am pleased to
report that Paxil CR(TM) has returned strongly to the US market. We
have also decided to take Flutiform(TM) through Phase III
development ourselves before out-licensing which will, we believe,
create significant additional value for shareholders." For further
information please contact: SkyePharma PLC Ian Gowrie-Smith,
Non-executive Chairman Michael Ashton, Chief Executive Officer
Peter Laing, Director of Corporate Communications Today +44 207 466
5000 Thereafter +44 207 491 1777 Sandra Haughton, US Investor
Relations +1 212 753 5780 Buchanan Communications +44 207 466 5000
Tim Anderson / Mark Court About SkyePharma SkyePharma PLC uses its
world-leading drug delivery technology to develop easier-to-use and
more effective formulations of drugs. The majority of challenges
faced in the formulation and delivery of drugs can be addressed by
one of the Company's proprietary technologies in the areas of oral,
injectable, inhaled and topical delivery, supported by advanced
solubilisation capabilities. For more information, visit
http://www.skyepharma.com/. Certain statements in this news release
are forward-looking statements and are made in reliance on the safe
harbour provisions of the U.S. Private Securities Litigation Act of
1995. Although SkyePharma believes that the expectations reflected
in these forward-looking statements are reasonable, it can give no
assurance that these expectations will materialize. Because the
expectations are subject to risks and uncertainties, actual results
may vary significantly from those expressed or implied by the
forward-looking statements based upon a number of factors, which
are described in SkyePharma's 20-F and other documents on file with
the SEC. Factors that could cause differences between actual
results and those implied by the forward-looking statements
contained in this news release include, without limitation, risks
related to the development of new products, risks related to
obtaining and maintaining regulatory approval for existing, new or
expanded indications of existing and new products, risks related to
SkyePharma's ability to manufacture products on a large scale or at
all, risks related to SkyePharma's and its marketing partners'
ability to market products on a large scale to maintain or expand
market share in the face of changes in customer requirements,
competition and technological change, risks related to regulatory
compliance, the risk of product liability claims, risks related to
the ownership and use of intellectual property, and risks related
to SkyePharma's ability to manage growth. SkyePharma undertakes no
obligation to revise or update any such forward-looking statement
to reflect events or circumstances after the date of this release.
OPERATIONAL REVIEW Products on the market In March 2005, the FDA
halted US distribution of Paxil CR(TM), our improved formulation of
GlaxoSmithKline's Paxil(R), and another unrelated product because
of manufacturing problems at a GlaxoSmithKline plant in Puerto
Rico. These problems have now been resolved and GlaxoSmithKline
returned Paxil CR(TM) to the market at the end of June. However
because of the supply disruption GlaxoSmithKline's total sales of
Paxil CR(TM) in the first half of 2005 were down by 65% in constant
exchange rate terms to 67 million pounds ($126 million). Prior to
the FDA action, Paxil CR(TM) held about 7% of all new US
prescriptions for SSRI antidepressants and we are encouraged by the
trend in new prescriptions. We concluded a new agreement with
GlaxoSmithKline in April that not only provided us with a $10
million lump-sum payment and increased the royalty rate on this
product from 3% to 4% but also maintained our royalty income even
while the product was off the market. Xatral(R) OD (Uroxatral(R) in
the USA) is our once-daily version of Sanofi-Aventis's Xatral(R)
(alfuzosin), a treatment for the urinary symptoms of benign
prostatic hypertrophy. Xatral(R) OD has been on the market outside
the USA since April 2000 and the older multidose versions of
Xatral(R) have now largely been withdrawn. Uroxatral(R), launched
in the USA in November 2003, currently holds 11% of the combined
prescriptions written for it and for its main competitor. Xatral(R)
OD has now been approved in Europe for a second indication, acute
urinary retention, with Phase III trials ongoing for the USA. In
the first half of 2005, reported sales of all forms of Xatral(R)
were ?157 million, up by 16% in constant exchange rate terms. Sales
of DepoCyt(R) in the USA by our partner Enzon were $3.3 million, up
45% on the prior year. Our European partner Mundipharma, which
launched the product as DepoCyte(R) in February 2004, had sales of
$2.2 million. We have now completed the Phase IV trial that will be
used to support a filing for the most common form of neoplastic
meningitis, associated with solid tumours. Solaraze(R), our topical
gel treatment for actinic keratosis, is now marketed in the US by
the Doak Dermatologics unit of Bradley Pharmaceuticals. Sales in
the first half of 2005 were in the region of $5 million.
Solaraze(R) is marketed in Europe and certain other territories by
Shire Pharmaceuticals. In the first half of 2005 Shire's total
non-US sales were $5.4 million, up by 44%. In December our US
marketing partner Endo Pharmaceuticals launched DepoDur(TM), our
new injectable analgesic for the treatment of pain after surgery.
Sales in the first half of 2005 were $2.3 million. Given the length
of time typically needed to establish hospital products, we are
confident that this initial sales level does not reflect the full
potential of the product. In the UK, we were informed by the UK
regulatory agency, the CSM, that it will recommend approval for
DepoDur(TM), subject to certain conditions being satisfied. We are
in discussions with the CSM about these conditions (which do not
require further clinical trials). Assuming final approval is
received, the UK approval will be used as the basis for seeking
approval throughout the European Union under the EU's Mutual
Recognition procedure. DepoDur(TM) will be marketed in Europe by
our partner Zeneus Pharma. Following FDA approval in May, First
Horizon Pharmaceutical Corporation launched Triglide(TM)
(fenofibrate) on the US market in July. We licensed Triglide(TM), a
once-daily oral treatment for elevated blood lipid disorders, to
First Horizon in 2004. We will receive 25% of First Horizon's net
sales of this product in the form of royalty income and
manufacturing revenues. Lipid disorders such as elevated
cholesterol and triglycerides are proven risk factors for
cardiovascular disease and already affect over half of the US
population. Even among the minority who are treated, only a few
attain target goals. Treatment therefore represents a major area of
unmet medical need. Fenofibrate not only lowers levels of total
triglycerides and LDL cholesterol ("bad cholesterol") in the
bloodstream but also has the valuable property of raising
abnormally low levels of HDL cholesterol ("good cholesterol"),
increasingly recognized as a major cardiovascular risk factor.
Sales of Abbott's Tricor(R), the current branded version of
fenofibrate, already exceed US$ 1 billion. Fenofibrate is highly
insoluble in water, resulting in variable uptake from the stomach
and requiring the patient to take the tablets with food. In
Triglide(TM) this drawback has been overcome by our proprietary
IDD(TM)-P solubilization technology. Triglide(TM) has comparable
absorption under both fed and fasting conditions and therefore
allows patients to take the drug at any time, improving compliance
and simplicity for both patients and prescribers. Products in
late-stage development Foradil(R) Certihaler(R) is our new version
of Novartis' long-acting bronchodilator Foradil(R) (formoterol). We
developed not only the multidose dry-powder inhaler device but also
the formulation technologies that ensure dose consistency
regardless of storage conditions. These technologies are also
involved in a new collaboration with Novartis to jointly develop
another bronchodilator, QAB149. The product has now been launched
in Germany and is approved in eleven other countries in Europe,
Latin America and South Africa. In the USA, where the product will
be marketed by Schering-Plough, Novartis has responded to the FDA
about the conditions imposed in a second "approvable" letter issued
in December 2004. We have completed Phase III trials of Requip
24hr(TM), the once daily version of GlaxoSmithKline's Parkinson's
drug Requip(R). The product is expected to be filed by
GlaxoSmithKline later this year. We are developing several other
asthma drugs in metered-dose aerosol inhalers (MDIs) powered by a
hydrofluoroalkane (HFA) propellant gas. AstraZeneca has now filed
for approval of an HFA-MDI version of the inhaled steroid
Pulmicort(R) (budesonide) in the first country in Europe,
triggering a milestone payment. We will also receive double-digit
royalties on sales of Pulmicort(R) HFA-MDI. Our own HFA-MDI version
of the bronchodilator formoterol will commence Phase III trials in
the autumn, on track for planned filing in 2007. Because of the
success of combination products, there is now a correspondingly
diminishing market opportunity for single agent bronchodilators and
we are therefore currently undertaking a strategic review of
formoterol HFA-MDI. Flutiform(TM) HFA-MDI (a fixed-dose combination
of formoterol and the inhaled steroid fluticasone) has now
completed its Phase II trial. The results have been reviewed by the
FDA and we have now submitted an IND to commence Phase III trials
in early 2006 with a target filing date of mid-2007. The market for
combination products for asthma alone is already worth in excess of
$5 billion and growing rapidly and is projected to be worth $10
billion by 2010. We continue to believe that Flutiform(TM) will be
an important product, with significant advantages over the limited
number of potentially competitive products that we expect can reach
this market over the next few years. As discussed in more detail in
the accompanying release today, we have now decided to proceed with
Phase III development at our own expense. This should allow us to
appoint a marketing partner or partners at a later stage and
therefore on substantially better terms than we had previously
intimated. We have extended our relationship with Mundipharma, our
European marketing partner for DepoCyte, by granting rights outside
North America and Japan for DepoBupivacaine(TM), a long-acting
local anaesthetic that we believe complements DepoDur(TM). We will
receive up to $80 million in milestone payments and a 35% share of
sales (30% in markets outside Europe). DepoBupivacaine(TM) is
currently in Phase II trials, with results expected in the autumn.
At that time we will commence negotiations with potential US
licensees. Endo, our US marketing partner for DepoDur(TM), has the
right of first negotiation for US commercial rights to
DepoBupivacaine(TM). We are also in negotiations to appoint
licensees for other territories. Propofol IDD-D(TM) is our novel
formulation of propofol, a widely-used injectable anaesthetic and
sedative. Our formulation has been designed not to support
microbial growth, a recognised problem with current versions, and
should provide uninterrupted sedation for 24 hours, ideal for the
fast-growing intensive care market. We are in dialogue with the FDA
on the design of the additional trials required for approval. We
are also in current discussion with potential licensees for Europe
and certain other markets. Current trading and prospects Apart from
the continued delay in the licensing in Flutiform(TM), the results
and net loss for the first half of 2005 were in line with the
Directors' expectations. These expectations have been revised as a
result of the decision to self-fund the development of
Flutiform(TM). This decision will result in additional development
costs of 8 million pounds which it had previously assumed would be
reimbursed by a partner during the second half of 2005. The balance
of the business is expected to perform broadly in line with
Directors' previous expectations. The future We are determined to
maximise the long-term return from our products and to move away
from reliance on one-off milestone payments, which historically
have made up the majority of our revenues. Where possible, we have
also taken products further in development before out-licensing in
order to optimise the returns we can obtain. Inevitably this has
brought a short-term penalty in terms of revenues and cashflow but
we are confident that this is the correct long-term approach, which
will greatly enhance the value of our products to the company. In
the accompanying release, you will see that I have indicated to the
Board that it is my intention to retire next year after I reach the
age of 60. It has been my great pleasure to work with such a
talented group of staff at SkyePharma. I will be stepping down no
later than the Annual General Meeting. Meanwhile I will be working
with the Board to identify a successor and to ensure a smooth
transition. Michael Ashton Chief Executive FINANCIAL REVIEW
Turnover Revenues for the half year were 3% higher at 36.0 million
pounds compared with 35.1 million pounds in the same period in
2004. This is primarily due to an increase in royalty income as
well as higher manufacturing and distribution revenue. Revenues
have increased by a cumulative annual growth rate of 37% since
1996. Contract development and licensing revenues decreased 7% to
19.5 million pounds for the period (H1 2004: 21.0 million pounds).
Revenues recognised from milestone payments and payments received
on the signing of agreements in the period decreased by 0.5 million
pounds to 17.6 million pounds and included revenues from First
Horizon for the US marketing and distribution rights for Triglide
and Mundipharma for the European marketing and distribution rights
for DepoBupivacaine. In addition, 3.3 million pounds of revenue was
recognised from GlaxoSmithKline on the phase III clinical trials of
Requip (ropinirole), AstraZeneca on the phase III clinical trials
of Budesonide HFA and Novartis on the phase II clinical trials of
QAB 149. Research and development costs recharged fell by 1.0
million pounds mainly due to a fall in the costs recharged to Micap
plc in respect of the development of their microencapsulation
technology. Royalty income, principally from Paxil CR, Xatral OD,
DepoCyt and Solaraze, increased by 17% to 12.0 million pounds
compared with the first half of 2004. Manufacturing and
distribution revenues increased by 19% to 4.6 million pounds for
the period mainly due to higher production of QAB 149, compared
with 3.9 million pounds in H1 2004. Deferred income During the
period there was a net reduction in deferred income of 0.9 million
pounds under SkyePharma's revenue recognition policy. Total
deferred income of 13.2 million pounds as at 30 June 2005
comprised: 31 December 30 June 2004 Received * Recognised 2005
pounds pounds pounds pounds million million million million
Contract development and licensing revenue 14.1 18.6 (19.5) 13.2 *
Includes exchange adjustments Deferred income will be released in
subsequent periods as the related costs are incurred or as any
associated obligations under the relevant contracts are satisfied.
Cost of sales Cost of sales comprises research and development
expenditures, including the costs of certain clinical trials
incurred on behalf of our collaborative partners, the direct costs
of contract manufacturing, direct costs of licensing arrangements
and royalties payable. Cost of sales increased by 26% to 14.6
million pounds in the first six months of 2005 (H1 2004: 11.6
million pounds). This was mainly due to an increase in
manufacturing and distribution expenses ahead of the approval and
launch of Triglide, as well as DepoDur costs since its launch in
December 2004. The resulting gross profit decreased 9% to 21.4
million pounds compared with 23.5 million pounds in the first half
of 2004. Expenses Selling, marketing and distribution expenses
decreased to 0.5 million pounds (H1 2004: 1.1 million pounds),
reflecting continued savings resulting from the Group
reorganisation announced in 2003. Amortisation of intangible assets
remained at 1.0 million pounds. Other administration expenses
before exceptionals also remained relatively constant at 9.1
million pounds in the first half, compared with 9.2 million pounds
in H1 2004. After exceptional items other administration expenses
decreased marginally at 9.1 million pounds in the first half (H1
2004: 9.8 million pounds). SkyePharma's own research and
development expenses in the period decreased by 3.5 million pounds
to 10.9 million pounds mainly due to a reduction in expenditure on
Budesonide HFA, DepoDur and other injectable products partly off
set by an increase in expenditure on DepoBupivacaine and Flutiform.
The other operating expense in the first six months of 0.3 million
pounds relates to a loss due to the movement in the fair value of
the Group's investment in GeneMedix plc. This compares with a net
gain of 2.7 million pounds in H1 2004, comprising a gain of 0.6
million pounds on the revaluation of the investment in GeneMedix
and an exceptional 2.0 million pounds profit in H1 2004 on disposal
of the Group's entire holding of Transition Therapeutics shares.
The Group began to equity account for Astralis Limited in December
2004 and the charge for the first six months is 0.6 million pounds,
compared with no charge in the first half of 2004. Operating
results The operating loss after exceptionals of 0.3 million pounds
is broadly constant with the loss in 2004 of 0.1 million pounds.
Before exceptionals the Group made a loss of 0.3 million pounds
compared with a loss of 1.6 million pounds in H1 2004. The
reduction is mainly due to the decrease in the Group's own research
and development of 3.5 million pounds, partly offset by the
increase in cost of sales. The retained loss for the period
increased by 7% to 9.3 million pounds (H1 2004: 8.7 million
pounds), after net interest payable of 8.3 million pounds (H1 2004:
8.5 million pounds). Earnings before interest, tax, depreciation
and amortisation ('EBITDA'), a commonly used indicator, resulted in
a profit of 3.3 million pounds in the period (H1 2004: 3.9 million
pounds). The loss per share for the period was 1.5 pence, which
represents a 7% increase compared with a loss of 1.4 pence for the
same period in 2004. Foreign currency movements did not have a
material impact on the results of operations in 2005 compared with
2004. Balance sheet The balance sheet at 30 June 2005 shows
shareholders' equity of 32.1 million pounds, with cumulative
goodwill written off to the profit and loss account reserve of
147.6 million pounds. In July 2004 the Group exchanged 49.6 million
pounds of its convertible bonds due 2005 for convertible bonds due
2024, leaving 9.8 million pounds of the 2005 bonds outstanding. In
September 2004 the 49.6 million pounds 2024 convertible bonds were
consolidated to form a single series with the 20 million pounds
2024 bonds issued in May 2004. In June 2005 the Group issued 20
million pounds 8% convertible bonds. Unless previously redeemed or
converted, the bonds will be redeemed by the Group at their
principal amount in June 2025. In addition the company repaid the
9.8 million pounds balance on the convertible bonds due June 2005.
As a result of these transactions the Group has 69.6 million pounds
convertible bonds due May 2024 and 20 million pounds convertible
bonds due June 2025 outstanding as at 30 June 2005. On the balance
sheet these are reflected as 63.3 million pounds in liabilities and
28.5 million pounds in equity. During the period the Group issued
5,482,238 Ordinary Shares to two former Astralis Directors to
acquire 11,160,000 common shares in Astralis. Liquidity and capital
resources At 30 June 2005 SkyePharma had cash and short-term
deposits of 20.2 million pounds and a bank overdraft of 1.2 million
pounds, compared with 15.3 million pounds cash and no bank
overdraft at 31 December 2004. Bank and other non-convertible debt
amounted to 11.3 million pounds at 30 June 2005, consisting
principally of a 6.8 million pounds property mortgage secured by
the assets of Jago. Net debt excluding the Paul Capital funding
liabilities amounted to 54.4 million pounds (31 December 2004: 55.5
million pounds). There was a net cash inflow from operating
activities of 4.5 million pounds for the half year (H1 2004: 3.0
million pounds outflow). During the first half of 2005 purchases of
property, plant and equipment were 1.1 million pounds. Purchases of
intangible fixed assets of 2.0 million pounds mainly relate to the
purchase of licenses to intellectual property in the area of
pulmonary delivery. This resulted in cash inflow before financing
for the period of 1.3 million pounds compared with a cash outflow
of 4.4 million pounds in the same period in 2004. Cash inflows from
financing in the period were 2.3 million pounds (H1 2004: 11.7
million pounds). In May 2005 the Group announced that it had signed
agreements for a private placement of 20 million pounds 8%
convertible bonds, with a first put after five years by the holder
of the bonds, and a final maturity of June 2025. The bonds were
issued on 3 June 2005. This 20.0 million pounds raised was received
prior to 30 June 2005 with expenses being incurred after this date.
The bonds are convertible at the option of the holder into
SkyePharma Ordinary Shares at an initial conversion price of 81
pence at any time prior to maturity. Borrowings of 5.2 million
pounds were repaid in the period (H1 2004: 3.3 million pounds).
This primarily comprises royalty payments paid to Paul Capital. The
proceeds from the sale of future royalty interests to Paul Capital
are classified as borrowings under IFRS and payments of royalties
treated as a reduction of the liability. In addition the company
repaid the 9.8 million pounds balance on the convertible bonds due
June 2005. International Financial Reporting Standards The interim
financial information for the six months ended 30 June 2005 has
been prepared for the first time in accordance with IFRS. In
preparing the financial information certain first-time adoption
provisions have been applied. The Group has established IFRS
accounting policies which it expects to apply in its financial
statements for the year ended 31 December 2005 and applied these
policies to its interim 2005 results. Further information on the
impact of our transition to IFRS can be found in note 11. Donald
Nicholson Finance Director CONSOLIDATED INCOME STATEMENT for the
six months ended 30 June 2005 Unaudited 6 months to 30 June 2004
Unaudited 6 Exceptional months to 30 Pre- items Notes June 2005
Exceptional (note 3) Total pounds'000 pounds'000 pounds'000
pounds'000 Revenue 2 36,036 35,099 - 35,099 Cost of sales (14,612)
(11,581) - (11,581) Gross profit 21,424 23,518 - 23,518 Selling,
marketing and distribution expenses (467) (1,133) - (1,133)
Administration expenses Amortisation (1,020) (1,005) - (1,005)
Other administrative expenses (9,073) (9,223) (537) (9,760)
(10,093) (10,228) (537) (10,765) Research and development expenses
(10,889) (14,362) - (14,362) Other (expense)/ income 4 (252) 644
2,021 2,665 Operating loss (277) (1,561) 1,484 (77) Interest and
similar expense (8,652) (8,856) - (8,856) Interest and similar
income 357 370 - 370 Share of loss in associate (576) - - - Loss
before income tax (9,148) (10,047) 1,484 (8,563) Income tax expense
(124) (95) - (95) Loss for the period (9,272) (10,142) 1,484
(8,658) Attributable to: Equity holders of the Company (9,272)
(10,142) 1,484 (8,658) Earnings per share 5 attributable to the
equity holders of the Company during the period (expressed in pence
per share) Basic earnings per share (1.5)p (1.6)p 0.2p (1.4)p
Diluted earnings per share (1.5)p (1.6)p 0.2p (1.4)p All results
represent continuing activities. See Notes to the Interim Financial
Statements. CONSOLIDATED BALANCE SHEET as at 30 June 2005 Unaudited
30 Unaudited 31 June December Notes 2005 2004 pounds'000 pounds'000
ASSETS Non-current assets Goodwill and intangible assets 95,724
95,361 Property, plant and equipment 36,546 40,921 Investments in
associates 6 16,752 14,332 Available-for-sale financial assets
4,371 5,236 153,393 155,850 Current assets Inventories 2,497 1,531
Trade and other receivables 15,532 18,145 Financial assets at fair
value through profit or loss 841 1,093 Cash and cash equivalents
20,227 15,337 39,097 36,106 Total Assets 192,490 191,956
LIABILITIES Current liabilities Trade and other payables (17,356)
(20,610) Convertible bonds 8 - (9,441) Other borrowings 7 (12,455)
(10,723) Derivative financial instruments - (164) Deferred income
(10,821) (11,808) Provisions - (282) (40,632) (53,028) Non-current
liabilities Convertible bonds 8 (63,343) (50,382) Other borrowings
7 (49,238) (49,347) Deferred income (2,360) (2,322) Other
non-current liabilities (3,193) (2,924) Provisions (1,606) (1,664)
(119,740) (106,639) Total Liabilities (160,372) (159,667) Net
Assets 32,118 32,289 SHAREHOLDERS' EQUITY Share capital 9 63,990
63,440 Share premium 323,264 320,980 Translation reserve (1,592)
(1,156) Fair value reserve (1,406) (543) Retained earnings
(389,973) (382,844) Other reserves 37,835 32,412 Total
Shareholders' Equity 32,118 32,289 See Notes to the Interim
Financial Statements. CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the six months ended 30 June 2005 Share Share Translation Fair
value capital premium reserve reserve pounds'000 pounds'000
pounds'000 pounds'000 At 1 January 2005 63,440 320,980 (1,156)
(543) Foreign currency translation differences - - (436) - Fair
value loss on available-for-sale investments - - - (863) Net income
recognised directly in equity - - (436) (863) Loss for the period -
- - - Total recognised income - - (436) (863) Share based payments
- - - - Issue of share capital 548 2,276 - - Exercise of share
options 2 8 - - Repayment of convertible bonds due June 2005 - - -
- Issue of convertible bonds due May 2024 - - - - At 30 June 2005
63,990 323,264 (1,592) (1,406) Retained Other Total earnings
reserves equity pounds'000 pounds'000 pounds'000 At 1 January 2005
(382,844) 32,412 32,289 Foreign currency translation differences -
- (436) Fair value loss on available-for-sale investments - - (863)
Net income recognised directly in equity - - (1,299) Loss for the
period (9,272) - (9,272) Total recognised income (9,272) - (10,571)
Share based payments 1,445 - 1,445 Issue of share capital - - 2,824
Exercise of share options - - 10 Repayment of convertible bonds due
June 2005 698 (698) - Issue of convertible bonds due May 2024 -
6,121 6,121 At 30 June 2005 (389,973) 37,835 32,118 See Notes to
the Interim Financial Statements. CONSOLIDATED CASH FLOW STATEMENT
for the six month ended 30 June 2005 Unaudited 6 Unaudited 6 months
to 30 months to 30 Notes June 2005 June 2004 pounds'000 pounds'000
Cash flows from operating activities Cash generated from operations
10 4,658 (2,886) Income tax paid (119) (95) Net cash generated from
operating activities 4,539 (2,981) Cash flows from investing
activities Purchases of property, plant and equipment (1,050)
(2,760) Purchases of intangible assets (1,978) (1,168) Purchase of
shares in associates (173) - Purchase of available for sale
investments - (168) Disposal of available for sale investments -
2,650 Net cash used in investing activities (3,201) (1,446) Cash
flows from financing activities Proceeds from issue of ordinary
share capital 11 181 Proceeds from issue of convertible bonds due
June 2025 20,000 - Proceeds from issue of convertible bonds due May
2024 - 20,000 Expenses of issue of convertible bonds due May 2024 -
(1,135) Repayment of convertible bonds due June 2005 (9,806) -
Repayments of borrowings (5,151) (3,339) Repayment of finance lease
principal (39) (176) Interest paid (2,920) (4,112) Interest
received 249 316 Net cash used in financing activities 2,344 11,735
Effect of exchange rate changes (16) (323) Net increase in cash and
equivalents 3,666 6,985 Cash and cash equivalents at beginning of
the period 15,337 22,042 Cash and bank overdrafts at end of the
period 19,003 29,027 Notes to the Interim Financial Statements for
the six months ended 30 June 2005 are available on
http://www.skyepharma.com/ or by calling 212 753 5780 or email for
a full copy of the report to . DATASOURCE: SkyePharma PLC CONTACT:
Ian Gowrie-Smith, Non-executive Chairman, Michael Ashton, Chief
Executive Officer, Peter Laing, Director of Corporate
Communications, Today: +44-207-466-5000, Thereafter:
+44-207-491-1777, Sandra Haughton, US Investor Relations,
+1-212-753-5780, all of SkyePharma PLC; Buchanan Communications:
Tim Anderson or Mark Court, +44-207-466-5000 Web site:
http://www.skyepharma.com/
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