Delivering Profits at SkyePharma
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.
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No Dilution Necessary: The Promise of Project Financing
Project financing, claim its proponents-in particular Symphony Capital-offers an alternative to highly dilutive equity offerings, preserving the upside from the development of a successful product for the biotech. That's true, though this expensive capital isn't for everyone. Yet as Big Pharma's productivity challenge deepens, project financing is helping to swing the balance of power further towards small companies.
Sinclair Pharma: How Low Risk Can You Go?
Sinclair Pharma was the only health care firm to have floated in Europe in 2003; investors liked its very low risk model: take little development risk then partner for marketing. Yet in taking the specialty model to its extreme, Sinclair's challenge will be to secure enough valuable products to keep investors interested, particularly if European markets warm up and begin to embrace a new, stronger generation of R&D focused firms.
Medeus Deals Quickly for Skye's Depomorphine
Newly-created Medeus Pharma hasn't waited long to sign its first in-licensing deal. Only two months after its creation, through the acquisition of Elan's European sales and marketing infrastructure, the firm has secured European rights to SkyePharma's sustained-release post-op pain treatment DepoMorphine for €100 million. SkyePharma continues shifting the source of its revenues from milestone payments to more predictable royalties; Medeus flexes its muscle as a viable, fast-moving competitor to larger pan-European in-licensers.