SkyePharma records massive net losses

Following a year of shake-ups and changes, SkyePharma, the drug delivery technology company, has revealed that in the year to December 31st 2005 it experienced a sizeable loss.

SkyePharma posted net losses for the 12-month period of ?50.9 million, in addition to an 18.1 per cent drop in revenue and a 16 per cent decrease in royalties.

The company now appears to be pinning hopes on the Flutifrom product, which began phase III trials during the difficult period and was the focus of licensing negotiations between SkyePharma and other companies.

“We are focused in the short term on the licensing of Flutiform and the divestment of our injectables business,” said Dr Jerry Karabelas, non-executive chairman of the company.

“We remain convinced that Flutiform will become a major product. We believe that the strategic initiatives we have adopted will enable the company to maximise the potential of Flutiform and other pipeline products, to become profitable in the near term and to deliver long-term value for shareholders.”

Dr Karabelas referred to 2005 as a “difficult year” for the company, but offered that following strategy changes and changes at board level, SkyePharma are potentially in a better position for the next 12 months.

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