Buoyant sales of inhaler product Flutiform accounted for the significant upswing in first-half revenues at Skyepharma (SKP). In-market sales of the product - a measure based on sales to pharmacies - leapt 129 per cent in euro terms year on year, which in turn helped underlying revenues (excluding milestone payments) jump 51 per cent to £40.7m. A reported drop in operating profits to £12.5m (from £13.2m in 2014) reflects the absence of certain milestone payments received last year. Excluding these one-off cash windfalls, operating profits more than doubled to £12.4m.
Skyepharma also earns royalties on products sold by third parties. Sales of local analgesic drug Exparel by US group Pacira rose 42 per cent, while sales of several next-generation respiratory drugs at GlaxoSmithKline (GSK) collectively grew to £123m, compared with £19m this time last year. Royalties from Solaraze - a gel used to treat dry skin patches - were also significantly ahead of expectations due to temporary manufacturing issues at a competitor.
Chief executive Peter Grant said Skyepharma had benefited from the timing of several product launches last December, but expects sales momentum to continue into the second half.
Analysts at N+1 Singer have upgraded their current-year forecasts in light of the sales surge. The brokerage now expects pre-tax profits of £16.1m (previously £15.8m), giving EPS of 12.1p, compared with £16.7m and 18.5p in 2014.
SKYEPHARMA (SKP) | ||||
---|---|---|---|---|
ORD PRICE: | 282p | MARKET VALUE: | £296m | |
TOUCH: | 278-282p | 12-MONTH HIGH: | 378p | LOW: 246p |
DIVIDEND YIELD: | NIL | PE RATIO: | 12 | |
NET ASSET VALUE: | 35p | NET CASH: | £21m |
Half-year to 30 June | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
---|---|---|---|---|
2014 | 34.4 | -18.1 | -27.0 | nil |
2015 | 40.8 | 10.5 | 8.7 | nil |
% change | +19 | +158 | +132 | - |
Ex-div: na Payment: na |