By Razak Musah Baba
LONDON--Skyepharma PLC's (SKP.LN) shares fell sharply Monday
after the company said it expects a delay in projected royalties
from GlaxoSmithKline PLC, while reiterating that 2014 results are
expected to be in line with the board's expectations.
The oral and inhalation drug-development company said revenue in
the fourth quarter benefited from a 2.0 million euro ($2.4 million)
payment from its licensee, Mundipharma International Corporation
Ltd., following the launch of its key product flutiform--for the
treatment of bronchial asthma--in Spain in December as well as
growing royalties and income from flutiform and a share of higher
Exparel net sales.
Skyepharma said drugmaker GlaxoSmithKline PLC's third-quarter
sales of two products that use technology licensed by Skyepharma
were below market expectations.
Consequently, Skyepharma said it expects royalties from the
products should still reach the cap of GBP9.0 million per annum,
but that they may be one year later than the board had
expected.
Analysts at N+1 Singer have reduced their forecasts as a
consequence and now forecast Skyepharma's GBP9 million royalty cap
to be reached in 2017 from 2016.
The broker however remains positive on the company, and says
2014 has been a transformational year for the group, providing it
with greater capability to invest in future growth opportunities
with net research and development to increase in the coming
years.
"We remain positive on the group and its pipeline," N+1 Singer
adds.
At 1120 GMT, Skyepharma shares traded down 16.6% or 57 pence at
287 pence, valuing the drug delivery company at GBP300.3
million.
Write to Razak Musah Baba at razak.baba@wsj.com; Twitter:
@Raztweet
Subscribe to WSJ: http://online.wsj.com?mod=djnwires