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SkyePharma (LON:SKP) - The known unknowns

Friday, Apr 09 2010 by
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Apr 09th 2010 - Edison Investment Research today published a report on SkyePharma (SKP.L, LSE:SKP, LON:SKP) entitled "The Known Unknowns". In summary, the report says:

SkyePharma's investment case hinges on Flutiform. The drug is filed in the EU, but is stalled in the US, where additional study requirements - and the willingness of partner Abbott to fund them - remain unknown. The shares trade at a significant discount to fair value even without assuming any US Flutiform revenue. However, there are concerns at SkyePharma's ability to repay, if necessary, convertible bonds which can be put in 2013-14, although we believe the company should be able to refinance them if Flutiform is approved in the EU. Any event that clarifies Flutiform's US regulatory path and/or secures the long-term financial position should offer significant upside.




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Edison Investment Research is a leading international investment research company. It has won industry recognition, with awards both in the UK and internationally. The team of 95 includes over 60 analysts supported by a department of supervisory analysts, editors and assistants. Edison writes on more than 400 companies across every sector and works directly with corporates, fund managers, investment banks, brokers and other advisers. Edison’s research is read by institutional investors, alternative funds and wealth managers in more than 100 countries. Edison, founded in 2003, has offices in London, New York and Sydney and is authorised and regulated by the Financial Services Authority (www.fsa.gov.uk/register/firmBasicDetails.do?sid=181584). more »