SkyePharma shares are on the rise this morning after the firm posted a healthy set of financials and said that a deal to renegotiate its convertible bonds is in the offing.

The company said that revenues for the first half of 2008 were up 44% to £28.4 million, while operating loss before exceptionals narrowed 75% to £2.2 million.

Commenting on the firm’s performance, chairman Jeremy Scudamore said that in the last six months SkyePharma “has made significant progress on several fronts”. Most notable was the positive data received from seven Phase III studies of the flagship asthma combination drug Flutiform (fluticasone and formoterol) “and we remain on track to launch in both the USA and Europe in 2010”.

However the main reason for the share price rise, up 22.6% at 11am, is the possibility of a deal being struck over convertible bonds. Holders of the bonds could demand repayment of £69.6 million in May next year and a further £20 million in June 2010, which would leave the firm crippled financially and this has cast a shadow over the stock.

However, Mr Scudamore said that “we are also pleased that we are making good progress with proposals for renegotiating the convertible bonds which we expect to announce shortly”. Once this is completed, “we remain optimistic about the prospects for further growth of the business ahead of the launch of Flutiform and beyond," he said.