reasons:

1) Innovata are in merger talks with skypharma - (company has a valuation between 50-70p) and is currently trading on the lower end.

2) SkyePharma PLC ('the Company')
Notification of Major Interest in Shares

on 17th October 2005 by HBM BioVentures (Cayman) Ltd that following a series of
purchases it held a notifiable interest in 25,000,000 Ordinary shares of the
Company, representing 3.98% of the issued share capital of the Company.
-------------------------
on 25 October 2005 that HBM BioVentures (Cayman) Ltd had increased their
notifiable interest to 32,446,233 Ordinary Shares, representing 5.17% of the
issued share capital of the Company.
----------------------------------------
on 7 November 2005 that HBM BioVentures (Cayman) Ltd had increased their
notifiable interest to 50,000,000 Ordinary Shares, representing 6.63% of the
issued share capital of the Company.
--------------------
on 2 December 2005 that HBM BioVentures (Cayman) Ltd had increased their
notifiable interest to 57,295,894 Ordinary Shares, representing 7.60% of the
issued share capital of the Company.
----------------------------
on 5 December 2005 that HBM BioVentures (Cayman) Ltd had increased their
notifiable interest to 63,780,450 Ordinary Shares, representing 8.46% of the
issued share capital of the Company.
----------------------

HBM BioVentures (Cayman) Ltd have in the past 45 days or so increased their holding in the company from 25 million shares to well over 63 million shares now.

_______________

would love to know what you guys think.

SkyePharma pulls trading statement amid funding fears
By Lauren Mills
05 March 2006

SKYEPHARMA, the troubled UK drugs company, has pulled its trading statement ahead of this Thursdays shareholder meeting raising fresh fears about the drug companys financial health.

The trading statement was originally expected two weeks ago, then delayed until last week.

A SkyePharma spokesman said: The trading update is essentially a product update and it will be issued with the preliminary results in April. The key point is that if there was anything material that needed to be announced in a trading update then it would have been announced already to meet disclosure requirements.

Rebel shareholders, led by North Atlantic Value (NAV), are campaigning to oust Jerry Karabelas as SkyePharmas chairman and install Bob Thian, chairman of laboratory equipment firm Whatman and Southern Water, in his place. They are angry because the company has not yet disclosed the full extent of the drain on its cash resources.

The rebels claim Karabelas told them in a meeting in February that the group could face a going concern issue in June.

They allege that they were told the company could run out of cash if SkyePharma was unable to sell its Santiago-based injectables business, or if it failed to find a partner for Flutiform, its asthma treatment, or was unable to find a partner to help fund late-stage trials of DepoBupivacaine, one of its pain-relief drugs.

SkyePharma has since admitted that if the business was left in its existing form with no licensing deal or disposals and with new management imposed by NAV, then it could face a funding crisis. Theoretically that is possible, said Ken Cunningham, the groups chief operating officer.

In a statement late on Friday, Karabelas denied the drug development group was in financial trouble. There is no cash problem, he said.

Karabelas statement was not enough to allay the rebels fears about SkyePharmas financial position. In an interview with The Business, Thian gave a grim warning that the company will need to raise new cash to survive.

I would be amazed if this company did not need to raise more money from shareholders at some time not too far in the future, he said. It has some very interesting products, all of which need funding, and there is not enough money to develop them to the point of making a return.

Thian, who describes himself as a reforming chairman, said he would work full-time for SkyePharma if appointed chairman. I see it as a 90-hours-a-week job, he said.

Thian added that he was disappointed that the company had not taken the opportunity to update the City with a trading statement.

There must be no further doubt about the probity of the company and this was an opportunity to put the facts into the public domain and allay investors concerns, he said.

The rebels believe Thian has what it takes to restore SkyePharmas fortunes. They cite his success at Whatman, where he engineered a turnround that resulted in a threefold increase in the value of the companys shares. SkyePharmas board are strongly opposed to his appointment.


http://www.thebusinessonline.com/Stories.aspx?SkyePharma%20pulls%20trading%20statement%20amid%20funding%20fears&StoryID=283F5B53-2482-4601-850D-8A618D22E726&SectionID=F3B76EF0-7991-4389-B72E-D07EB5AA1CEE

the time has come for the management to stand up and do something positive, stop blaming everybody else and have look at themselves. tipped in shares mag for one of the tips of the year for 2005 let alone 2006 and you are lower now then you were then. what have you (the management) done in over a year??? you have good products a look pieline but the shareprice has gone down, i know who i blame!! saying all that im in, staying in, and hope you can get your act together.

Kivver,

look further back, its a lot longer than 1 yr! Been tipped many times over the last 5 or 6 years yet the management has continually failed to deliver on its jam tomorrow promises - just wish i hadnt trusted what they said for so long!!!

i take you have been in on this one fundy ??? it was the shares tip last year which brought my attention to it (only been seriuosly investing for about 2 years).

Been in and out several times over the last 5 yrs. Last time i was long i sold on the morning the rights issue was announced then shorted it immediately and had all my losses from the trade back in two hours.

Its quite a sad story really cos the pipeline and potential the company has had throughout that period has been impressive, just the management have never managed to extract any value. Should have realised when they got such a poor deal from Glaxo for the Paxil CR that the mgmt wasnt capable, but ignored this and repeated signs (ie the pulmonary deal failed promises) so if nothing else its been a learning experience for me, saying that i am actually up over the years, it just wasnt as good as i expected or worth the hassle.

looks like i may have put too much faith in too, now bought 3 batches and in loss with all 3. if this egm doesnt work in my (and others) favour i could lose a lot of money. There has been a fair sized volume of shares traded in the last week or so and the price hasnt dropped dramatically so that has
given me a bit of hope.

have you voted at the egm? if so which way if i may ask

i asked this question on another bb, i hav'nt a clue how to. If certificates are held by a broker (like most investors i presume) how do investors get a vote????

you need to phone the broker and ask for a "proxy voting form", you should really have received this from your broker but the short timescales have given the brokers little chance to get it sorted

not heard or seen anything, suppose that will have happened to a lot of investors, thanks for the info. i would like to hear what the management have to say then make a decision after that but suppose thats not the way it works.

I phoned my broker who voted on my behalf.

any thoughts on 2morrows EGM???

wouldnt want to 2nd guess what will happen or what impact it will have on the SP

still no mass sell off gives me great hope.

EGM webcast available, has just started


http://ir.skyepharma.com/phoenix.zhtml?c=79810&p=irol-EventDetails&EventId=1216890

SKP have asked Bob Thian to become non exec chairman

cheers fundy, price still holding, lets have some good news.

looks like the vote went in favour (just) of the current board, hope they pull their finger out now and put this company where it should be. lIKE IN THE FTSE 100 let alone the ftse 250 (demoted from that too)!!

thanks skp for doing your very best as our investments disappear. NOT

I see share price is disappointing again, no incentive for buying. Some news from mgmt re the way forward and or a trading statement would help. A close below 40p will make the chart look really ugly though there is further support around 35p and then the 30p of the rights issue