SkyePharma to delist from Nasdaq exchange

SkyePharma has announced its intention to delist its American depository shares from the Nasdaq stock market and end its reporting obligations to the US Securities and Exchanges Commission (SEC).

The company has made this statement following the decision that continued compliance with SEC regulations, specifically parts of the Sarbanes-Oxley Act, are expensive for the firm while providing only limited benefits.

Additionally, SkyePharma asserts that its investors are awarded protection through the firm’s ongoing compliance with UK-rules, including the regulations of the London Stock Exchange.

Frank Condella, chief executive officer of the company, said: “The US remains a very important market for SkyePharma, both as a market for our products and for investors in our company.”

He added that the time and expense involved in keeping the company listed on a US-based stock exchange does not provide value for money for the firm, as the bulk of the trading of its shares takes place on the London Stock Exchange.

Mr Condella stated that the savings made in delisting from the Nasdaq exchange would provide SkyePharma with greater funds to invest in developing the company.

Last month, SkyePharma reported its results for the 2006 financial year, with the firm generating revenues of 43 million pounds from its continuing operations, a drop of 15 per cent on its figures for the previous year.