We recently attended Skyepharma’s capital markets day (CMD). Flutiform continues to post strong revenues, contributing directly to margins and underpinning strong growth in cash from operations. Post the CMD we have higher conviction for the potential mid- to long-term contributions from the respiratory assets in development, in particular the ground-breaking SKP-2075 for COPD/smoking asthma with headline Phase II data due in 2017 and SKP 2076, the triple therapy for asthma, which has potential for early partnering. At this stage we maintain our current forecasts but highlight that our 377p/share valuation looks conservative, particularly as we envisage the mid- to long-term earnings story unfolding.