RNS Number:7496N
Skyepharma PLC
21 July 2003


For Immediate Release                                              21 July, 2003



                                 SkyePharma PLC



                                 Trading Update

                SkyePharma Reaffirms Guidance for 2003 Full Year



LONDON, ENGLAND, July 21, 2003 -- SkyePharma PLC (Nasdaq: SKYE; LSE: SKP) is
pleased to provide a trading update at the end of the first six months of 2003.
Revenues for the first half are likely to be lower than in the comparable period
of the previous year. This primarily arises because of the timing and
recognition of milestone payments, still the major source of revenue. Because of
the sensitivity of results to revenues, the Company expects to report a net loss
for the first half substantially greater than management had expected in April
when it advised that there might be a loss for the first half. However the
Company remains confident that revenues and profitability for the 2003 full year
will still be in line with previous guidance.



Chief Executive Michael Ashton said "We are gratified by a continuing steep
increase in royalty income but the majority of our revenues in 2003 will still
arise from milestone payments, the timing and magnitude of which are naturally
difficult to forecast. I am pleased to announce that we have been able to
conclude a number of transactions in the first half, not least the acquisition
of rights to DepoCyte from Elan and the relicensing of those rights to
MundiPharma announced today. However a number of important new deals that we had
expected to close in the first half of the year are now likely to be concluded
in the second half, continuing the trend of recent years when the majority of
our revenues have been generated in the latter part of the year. Because of this
revenue mix, we said in April that we might report a loss for the first half and
this has turned out to be the case.



"We continue to expect sustained profitability and growth for the full year and
for future years. Over the next few years, a growing proportion of our revenues
will come from more predictable and less erratic royalty income and profit
share, generated by products such as DepoMorphine(TM)."



Notes to Editors



About SkyePharma

SkyePharma PLC uses its world-leading drug delivery technology to develop
easier-to-use and more effective formulations of drugs. The majority of
challenges faced in the formulation and delivery of drugs can be addressed by
one of the Company's proprietary technologies in the areas of oral, injectable,
inhaled and topical delivery, supported by advanced solubilisation capabilities.
For more information, visit http://www.skyepharma.com.



Except for the historical information herein, the matters discussed in this news
release include forward-looking statements that may involve a number of risks
and uncertainties. Actual results may vary significantly based upon a number of
factors, which are described in SkyePharma's 20-F and other documents on file
with the SEC. These include without limitation risks in obtaining and
maintaining regulatory approval for existing, new or expanded indications for
its products, other regulatory risks, risks relating to SkyePharma's ability to
manufacture pharmaceutical products on a large scale, risks that customer
inventory will be greater than previously thought, risks concerning SkyePharma's
ability to manage growth, market a pharmaceutical product on a large scale and
integrate and manage an internal sales and marketing organization and maintain
or expand sales and market share for its products, risks relating to the ability
to ensure regulatory compliance, risks related to the research, development and
regulatory approval of new pharmaceutical products, risks related to research
and development costs and capabilities, market acceptance of and continuing
demand for SkyePharma's products and the impact of increased competition, risks
associated with anticipated top and bottom line growth and the possibility that
upside potential will not be achieved, competitive products and pricing, and
risks associated with the ownership and use of intellectual property rights.
SkyePharma undertakes no obligation to revise or update any such forward-looking
statement to reflect events or circumstances after the date of this release.



For further information please contact:


SkyePharma PLC                                                +44 207 491 1777
Michael Ashton, Chief Executive Officer
Peter Laing, Director of Corporate Communications

Sandra Haughton, US Investor Relations                         +1 212 753 5780

Buchanan Communications                                       +44 207 466 5000
Tim Anderson / Nicola How


                      This information is provided by RNS
            The company news service from the London Stock Exchange
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