Skyepharma’s (SKP) balance sheet is looking a lot healthier since it completed its £112m capital raise in April. Tapping shareholders allowed the company to settle its existing bond debts and report net assets of £22.6m.
Shareholders who coughed up won't be disappointed by the group's progress. First-half operating profit (excluding £25m of costs associated with repaying the bond debt) nearly tripled year on year, to £13.2m, as sales of flutiform doubled compared to the final six months of 2013. The inhaler product was launched in eight countries during the period, including France, Israel and Switzerland, and won regulatory approval in a further four: Argentina, Singapore, Spain and Taiwan.
The group earned revenue from 15 approved products in the first half, including post-operative painkiller Exparel, which is owned by Pacira Pharmaceuticals (formerly Skyepharma’s in-house injectables business). Skyepharma usually receives a 3 per cent share of sales, but won a £4.7m bonus payment during the period after Exparel exceeded sales targets.
The partnership with GlaxoSmithKline (GSK) is also thriving. The pharma giant's new inhalation products - including Ellipta, Relvar and Anoro - use Skyepharma’s technology and could generate up to £9m in royalties for Skyepharma annually. In the first six months, GSK said these products generated total sales of £19m.
House broker N+1 Singer expects full-year pre-tax profits of £13.7m, giving EPS of 14p.
| SKEPHARMA (SKP) | ||||
|---|---|---|---|---|
| ORD PRICE: | 248p | MARKET VALUE: | £260m | |
| TOUCH: | 247-249p | 12-MONTH HIGH: | 266p | LOW: 69p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 22p* | NET DEBT: | 13% | |
| Half-year to 30 June | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2013 | 31.3 | -1.6 | -3.6 | nil |
| 2014 | 34.4 | -18.1 | -27.0 | nil |
| % change | +10 | - | - | - |
Ex-div: na Payment: na *Includes intangible assets of £5.7m, or 5p a share | ||||
