Edison Investment Research

SkyePharma

Company overview

SkyePharma is a drug delivery specialist, using its technologies to develop new formulations of established drugs, bringing clinical and lifecycle management benefits.

Date	Reports available	Download
Sep 03 2008	Against the odds SkyePharma has at long last announced the renegotiation of its £90m of convertible debt, removing, in the near-term, what in our view has been the number one concern hanging over its share price. The conversion price of the bonds has been reduced sharply, while the first put dates have been deferred by four and a half years. We now expect the share price to start to reflect the inherent value of underlying R&D. Research type: Company Comment - Refinancing	Log in to download 5 page note available
Jul 24 2008	At what price? Since our note in April spelled out the convertible bond problem that SkyePharma equity holders face, the stock has lost around 75% of its value. As we had speculated, refinancing/renegotiating the bond has proved extremely difficult, and the date on which holders of a £69.6m tranche of bonds could demand repayment in full is now only 10 months away. However, at the current price, many of these issues are priced in, and an opportunity might now exist for the sophisticated investor. Research type: Company Comment - Research update	Log in to download 10 page note available
Apr 14 2008	Put me down Holders of Skyepharma equity face just one major near-term issue – the risk of a significant dilution if holders of a £69.6m convertible debt can act in concert and force through a debt-for-equity swap. Although management is attempting to renegotiate this debt, we think it unlikely that this will be possible without damaging equity holders’ interests, and the issue is not yet fully recognised by the market. Research type: Company comment - Debt issue unrecognised	Log in to download 7 page note available
Apr 30 2007	The Skye's the limit The broad restructuring of Skyepharma into a smaller but potentially more profitable company offers a stock with considerable upside if the R&D process goes to plan, although balance sheet issues are set to remain a focus and the firm’s debt is still high relative to market cap. Management has gone to great lengths to make the operation more transparent and rebuild credibility with investors following a period of considerable turmoil. Research type: Company comment - Full year results	Log in to download 2 page note available

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Edison's research ... is balanced, objective and provides a level of detail not normally associated with smaller companies.

Peter Knowles
Director, Fyshe Horton Finney