H1 revenues up 19% and on track to deliver substantial growth for the full year
LONDON, ENGLAND, 26 August 2015 – Skyepharma PLC (LSE: SKP), the expert oral and inhalation drug development company, today reports its unaudited interim results for the six months ended 30 June 2015.
Financial Highlights
• Revenues up 19% at £40.8m (H1 2014: £34.4m)
– Revenues excluding milestones up 51% at £40.7m (H1 2014: £26.9m) driven by growth in revenues from flutiform®, EXPAREL®, GSK Ellipta® products and Solaraze®
• Operating profit £12.5m (H1 2014: £13.2m)
– Operating profit excluding milestones up 118% to £12.4m (H1 2014: £5.7m)
• Profit after tax £9.1m (H1 2014: loss of £17.7m)
– Pre-exceptional profit after tax up 17% to £9.1m (H1 2014: £7.8m)
• Basic earnings per share 8.7 pence (H1 2014: loss per share 27.0 pence)
• Cash and cash equivalents of £27.6m at 30 June 2015 (31 December 2014: £32.4m) after early repayments of secured debt at a cost of £11.8m, saving £1.0m in total future financing charges and leaving net cash of £20.9m (31 December 2014: £15.0m)
• Further strengthening of the balance sheet with early repayment of expensive secured debt and signing of a Revolving Credit Facility (RCF)
• Progress is being made with investment in additional flutiform® manufacturing capacity and product supply revenues are expected to be ahead of the Board’s previous expectations for 2015. As a result, after allowing for the likely shift of the next EXPAREL® sales milestone into 2016, underlying trading for the year is expected to be ahead of previous expectations
Operational Highlights
• 65% of revenues derived from products launched since March 2012 (H1 2014: 62%)
• Sustained growth of flutiform® driving royalty and product supply revenues and profitability
– In-market sales of flutiform® up 129% from H1 2014
• Sales by Pacira of EXPAREL® up 42% from H1 2014
• Sales by GSK of the royalty-generating Ellipta® range of products of £123m in H1 2015 compared with £19m in H1 2014 following additional approvals and launches of Breo®/Relvar® Ellipta®, Anoro® Ellipta® and Incruse® Ellipta®
• Royalties from Solaraze® and its authorised generic in the U.S. are significantly ahead of expectations due to a temporary market situation involving manufacturing issues at a competitor
• Continued progress with developing the Group’s inhalation and oral pipeline
Commenting on the results, Peter Grant, Chief Executive Officer, said:
“With a strong start to the year, Skyepharma is on track to deliver substantial growth in revenues in 2015, driven by products launched since March 2012. flutiform continues to gain momentum as its benefits are recognised by clinicians and patients in 30 countries around the world. Since H1 2014 we have seen further increases in revenues of EXPAREL and the GSK Ellipta range of products incorporating some of our proprietary technologies.
“We are on course to deliver a number of key objectives we set out at the start of the year, including growing revenues from approved products, scaling up production capacity for flutiform, further reducing our financing costs, improving balance sheet flexibility and progressing our internal R&D programmes where the net investment is weighted towards the second half of the year. We look forward to the rest of 2015 with confidence.”
A PDF version of the results presentation has been published on the Company’s website and a webcast of the analysts’ results presentation will be available shortly.
- Ends –
For further information please contact:
Skyepharma PLC
Peter Grant, Chief Executive Officer
Andrew Derodra, Chief Financial Officer +44 (0)20 7881 0524
Jonathan Birt, Investor and Media Relations
+44 (0)7860 361746
N+1 Singer
Shaun Dobson/Jen Boorer
+44 (0)20 7496 3000
FTI Consulting
Julia Phillips/Rob Winder/Natalie Garland-Collins
+44 (0)20 3727 1000
About Skyepharma PLC
Skyepharma combines proven scientific expertise with validated proprietary technologies to develop innovative oral and inhalation pharmaceutical products. The Group’s licenses cover 16 approved inhalation, oral, topical and injectable products, which generate milestones, recurring royalties, and in some cases, product supply revenues. The Group also earns milestones and contract development revenues from new product developments. Products developed by Skyepharma are marketed by some of the world’s most respected pharmaceutical companies. For more information, visit www.skyepharma.com
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