SOURCE: SkyePharma PLC

March 27, 2008 03:05 ET

SkyePharma PLC announces Final Results

London, UK--(Marketwire - March 27, 2008) -

                                 SkyePharma PLC

                    Preliminary statement of annual results

                      for the year ended 31 December 2007

SkyePharma PLC (LSE: SKP), LONDON, ENGLAND, 27 March 2008

Summary of Results

                                                                                            2007           *2006
                                                                                                      (see note)
                                                                                           GBP'm             GBP'm
Results
Continuing Operations: Revenue                                                              41.6            43.0

Continuing Operations: Operating loss before exceptionals                                   15.7            15.3
Continuing Operations: Loss before tax after exceptionals                                   23.7            19.3

Continued and Discontinued Operations: Net loss after tax                                   27.0            79.1

Net debt and liquidity
Total debt less cash including convertible bonds at face value                             122.6           111.7
Liquidity - cash and cash equivalents plus undrawn facilities                               33.1            47.6


* The 2006 results have been restated for certain prior period adjustments, as set out in the Operating and Financial review.

Highlights


- Successful divestment of Injectable Business relieves a significant
  cash burn.

- £50m financial restructuring: Paul Capital refinancing facility, CRC
  financing (approx. £35 million) and £15 million equity placing.

- Continued progress with Flutiform(TM) development:

  o  Completion of Phase-III long term safety study.

  o  Full enrolment of three Phase-III clinical efficacy trials.

  o  Renegotiated Flutiform(TM) agreement with Kos (now a wholly owned
     subsidiary of Abbott).  Kos now funds additional development costs 
     for the USA.

  o  Filing expected in Europe around end of 2008 and in USA in Q1 2009.

- Approvals and launches of Requip(R) Once-a-day in Europe, ZYFLO CR(TM)
  in USA and Sular(R) in the USA.

- SKP-1041 (oral sleep product) licensed to Somnus Therapeutics, US$4
  million received up front.

- Partnership with Dr Reddy's for potential development utilising two of
  SkyePharma's proprietary technologies.

Jeremy Scudamore, Non-Executive Chairman, said: "The Board believes that the underlying potential of SkyePharma's business is starting to take shape following the launch of a number of new products and the Company's financial restructuring during 2007. Our objectives are to renegotiate or refinance the convertible bonds in a timely manner, on reasonable terms, and turn SkyePharma into a profitable business over the next two years. Once Flutiform™ is approved and launched in the US and Europe, the Board believes that there are exciting prospects for growth in both revenues and positive cashflow at SkyePharma."

The results presentation has been published on the Company's website and a webcast of the analysts' conference will be available shortly after the conference is concluded.

For further information please contact:

SkyePharma PLC


Frank Condella, Chief Executive Officer
Ken Cunningham, Chief Operating Officer                   +44 207 491 1777
Peter Grant, Finance Director

Financial Dynamics (London enquiries)
David Yates / Deborah Scott                               +44 207 831 3113

Trout Group (US enquiries)
Christine Labaree / Seth Lewis                            +1 617 583 1308

About SkyePharma PLC

Using its proprietary drug delivery technologies, SkyePharma develops new formulations of known molecules to provide a clinical advantage and life-cycle extension. The Group has twelve approved products in the areas of oral, inhalation and topical delivery. The Group's products are marketed throughout the world by leading pharmaceutical companies. For more information, visit www.skyepharma.com.

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