Investment summary

“This is not the end. It is not even the beginning of the end. But it is, perhaps, the end of the beginning.” The words of Sir Winston Churchill could well be applied to Flutiform’s tortuous regulatory process which, with the CHMP’s positive opinion, has at last met with a positive outcome. Assuming that Flutiform is approved – effectively a formality – and launched, £83m of convertible bonds must be refinanced without unduly diluting equity holders. If SkyePharma were to achieve this, focus would at last revert to its operating activities, which the market cap should begin to reflect.

Last updated on 27/04/2012

Industry outlook

SkyePharma’s equity value hinges on the EU approval of Flutiform, an inhaled corticosteroid/long-acting beta-agonist combination product of fluticasone and formoterol for treating asthma, currently in CHMP arbitration proceedings. Also key to the investment case is the refinancing of SkyePharma's £83m of convertible bonds, which might be pursued irrespective of Flutiform's approval status.

Last updated on 23/04/2012