Credit crunch stalls SkyePharma refinancing plans

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Date: Tuesday 08 Jul 2008

LONDON (ShareCast) - Drug developer SkyePharma has lost a quarter of its value as investors grow impatient at the firm’s failure to make progress with plans to renegotiate or refinance its convertible bonds.

The company had said in May that a proposal to key bondholders and definitive plans for the bonds were expected to be announced shortly after results of two pivotal phase III efficacy trials of asthma treatment Flutiform.

Positive top line results of both of trials have now been reported, but despite significant support for its plans, talks about the specific proposals for the bonds have been postponed due to “current capital market conditions”.

More news is expected at the interim figures on 28 August.

Meanwhile, first half revenues will be significantly higher than in the first half of 2007, said the group.

“The directors remain optimistic about prospects for growth of the business once the bond refinancing has been resolved.”

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