SkyePharma, the fledgling drugs maker which recently faced a major shareholder rebellion, took a £20 million hit last year on three of the company’s major investments .

Chief executive Frank Condella admitted for the first time that the investments were now all but worthless, and had been made to serve the purpose of striking collaborations with strategic partners . Rebel shareholders contended against the purchases during a bitter campaign against SkyePharma’s management . In particular, the decision to build an 18.2% stake in Micap, which was floated by SkyePharma’s chairman at the time. Micap share prices have since fallen from 73p to just 4p.

Mr Condella said that he continued to believe that SkyePharma would go on to sign a partner in the development of the most promising of the company’s medicines, an asthma treatment known as Flutiform. In total, turnover for the last year fell by 18% to £63.1 million whilst net losses for the company rose to £51 million. Shares in the company rose ¾ p.