The asthma drugs market is set to grow

The company said the net losses rose to �50.9m ($90m) in 2005 from �18.6m the year before, due in part to higher costs.

Skyepharma needs to find a partner to share the financial burden of developing its asthma drug Flutiform.

The firm has new management after shareholders rebelled following delays in finding a partner for the new drug.

Growing Asthma market

"There is no disguising that 2005 was a difficult year for SkyePharma...We did not complete a development agreement for Flutiform, our major pipeline project," said Dr Jerry Karabelas, the company's chairman who took over earlier this year.

The asthma drug has been in phase three laboratory trials since February.

We are focused in the short term on the licensing of Flutiform and the divestment of our injectable business Dr Jerry Karabelas, Skyepharma chairman

The world market for asthma drugs is expected to exceed $20bn by 2010 and the fastest growing segment is combination drugs, of which Flutiform is an example.

The company believes no competing product is likely to hit the market for six years.

The drug company said it has hired UBS to sell its injectable products business and several trade and financial buyers have voiced an interest in it.

Former chairman Ian Gowrie-Smith was driven out by shareholders following a campaign organised by investment firm North Atlantic Value. Shareholders did not however manage to secure a board seat for their preferred candidate.

"We are focused in the short term on the licensing of Flutiform and the divestment of our injectable business," said Dr Karabelas.

He added:" While there is obviously uncertainty as to the timing of these two transactions, they will not only greatly reduce the company's current and future cash requirements, but also provide us with the funds to consider new opportunities related to oral and inhalation products."

Shares in the company dropped 1.3% to 38.5p on the London Stock Exchange following the announcement.