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SkyePharma says revenue falls 18%, net loss jumps 174% in 2005
By Angela McDaniels
Seattle, April 19 - SkyePharma plc's revenue decreased by 18% to £61.3 million for the year ended Dec. 31 from £75.2 million for the year ended Dec. 31, 2004, according to a company news release.
The company attributed the decrease primarily to continuing Paxil CR supply problems, slower overall market penetration of Triglide and DepoDur by marketing partners and the fact that it has not yet found a licensing partner for Flutiform, partly offset by an increase in manufacturing and distribution revenues.
In addition, SkyePharma said it has shifted away from license terms that prioritize upfront payments toward deal structures with higher royalty rates and increased milestone payments tied to product revenue targets.
Despite the decline in 2005, revenue has increased at a cumulative annual growth rate of 24% since 1996, according to the release.
Net loss grew 174% to £50.9 million, or 8.1p per share, for 2005 from £18.6 million, or 3.0p per share, for 2004.
Cash and short-term deposits were £34.3 million at Dec. 31, compared with £15.3 million at Dec. 31, 2004.
"There is no disguising that 2005 was a difficult year for SkyePharma, but the company now has a new management team and has adopted a new strategy," non-executive chairman Jerry Karabelas said in the release.
"We are focused in the short term on the licensing of Flutiform and the divestment of our injectables business. While there is obviously uncertainty as to the timing of these two transactions, they will not only greatly reduce the company's current and future cash requirements but also provide us with the funds to consider new opportunities related to oral and inhalation products."
London-based SkyePharma develops pharmaceutical products that use drug delivery technologies to provide easier-to-use and more effective drug formulations.
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