Preliminary statement of annual results SkyePharma PLC (LSE :SKP ), LONDON, ENGLAND, 25 March 2010 Summary of Results for the year ended 31 December 2009 2009 2008 GBP'm GBP'm Results Revenue 55.9 62.2 Net research and development expenditure 10.3 17.1 Pre-exceptional operating profit 15.1 10.9 Net loss after tax (post exceptional) (1.4) (28.7) Pre-exceptional earnings before interest, tax, 18.6 16.3 depreciation and amortisation ("EBITDA") Net debt and liquidity Net debt (total debt less cash*) 107.1 115.8 Liquidity - cash and cash equivalents plus undrawn 29.3 38.0 facilities * Net debt is as shown in the balance sheet, which is presented under IFRS Financial Summary * Trading in line with Board's expectations - revenues down 10% to GBP55.9m (2008: GBP62.2m) due to lower milestones in 2009 and non-recurr ing manufacturing revenues in prior year * Pre-exceptional operating profit up 39% to GBP15.1m (2008: GBP10.9m), reflecting significantly lower net R&D expenditure, cost savings, product price increases and GBP1.9 million cash received relating to prior year royalties * Net loss significantly reduced to GBP1.4m (2008: loss of GBP28.7m), post exceptional items, finance charges and tax * Strong pre-exceptional EBITDA up 14.1% to GBP18.6m (2008: GBP16.3m) * Cash and undrawn facilities of GBP29.3m at 31 December 2009 (2008: GBP38.0m) Operating Summary * FlutiformTM in the process of being filed for European approval * FlutiformTM Phase II studies conducted by Kyorin in Japan continue to make good progress; partnering discussions underway for Canada and Latin America * Meeting request submitted to US FDA to discuss Complete Response Letter for FlutiformTM * LodotraTM launched in Germany for treatment of rheumatoid arthritis joint stiffness; approved in 13 countries; US NDA filing expected Q3 2010 * Royalty revenues remain strong, with notable performances by Solaraze® and Requip® Once-a-day * Partner Somnus secured financing for Phase II programme for SKP-1041 in sleep maintenance * Formulation work initiated for SKP-1052 for diabetes * Restructuring of Lyon and Muttenz operating facilities generating annual cost savings of GBP2.0m * Frank Condellla appointed Chairman; Board further strengthend with appointment of Dr. Thomas Werner; Dr. Anne Brindley appointed EVP Pharmaceutical DevelopmentCommenting on the results, Frank Condella, Non-Executive Chairman, said:"SkyePharma made progress on a number of fronts during 2009, leading to a substantial increase in pre-exceptional operating profit and a second successive year of strong EBITDA. The Group continued to manage costs carefully and the restructuring of the manufacturing facility in Lyon, France, completed during the year will deliver long-term benefits. FlutiformTM is in the process of being filed in Europe and trials in Japan, the world's second largest pharmaceutical market, remain on track. In the United States, we are working to address the issues raised by the FDA and will provide an update in due course. We are confident that FlutiformTM has significant potential in the treatment of asthma."Trading in 2010 is expected to continue to benefit from the cost reductions and price increases agreed in 2009 and the Board anticipates revenues broadly in line with 2009. The Directors remain confident in the future prospects for the business." The results presentation has been published on the Company's website and a webcast of the analysts' conference will be available later today. For further information please contact: SkyePharma PLC Ken Cunningham, Chief Executive Officer +44 207 491 1777 Peter Grant, Chief Financial Officer Financial Dynamics Jonathan Birt / Susan Quigley +44 207 831 3113 Click on, or paste the following link into your web browser, to view the associated PDF document. http://www.rns-pdf.londonstockexchange.com/rns/1643J_1-2010-3-25.pdf This information is provided by RNS The company news service from the London Stock Exchange END
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