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Delivering Profits at SkyePharma

 
• By Chris Morrison

SkyePharma fulfilled its profitability promise in 2002. Yet warnings of a revenue slip in the middle of 2003 have highlighted the group's reliance on the timing of uncertain milestones. But by building up its clinical and regulatory capabilities, increasing the proportion of its revenues derived from royalties, and leveraging a full pipeline which includes improved biologics, SkyePharma aims to increase its development control over its own and partners' programs and thereby maintain and grow its newfound profitability.

SkyePharma PLC , the UK-based drug delivery specialist-turned-specialty pharmaceutical group, made much of its pledge to turn profits in 2002, and nearly didn't come through. But two last minute licensing deals clinched the transition.

The challenge now for SkyePharma CEO Michael Ashton is to develop a business model that will enable sustained profitability. This...

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