Innovata pulls out of SkyePharma merger

The merger between SkyePharma and Innovata will now not go ahead, but SkyePharma insists it is still looking for new offers.

Innovata had made a preliminary takeover approach in November but SkyePharma is now discussing cash offers from other companies over Innovata’s share exchange merger proposals.

SkyePharma is searching for investors to help fund the development of Flutiform (formoterol plus fluticasone), a combination inhaled product for asthma.

In September after failing to find a partner to fund Phase III trials of Flutiform SkyePharma raised ?35 million in a discounted rights issue.

It is thought, if approved and with strong enough marketing, Flutiform could be a firm rival to AstraZeneca’s Symbicort (formoterol and budesonide) and GlaxoSmithKline’s Advair/Seretide (salmeterol and fluticasone).

Last year Innovata acquired Quadrant for ?48.5 million and had an almost doubling of turnover to ?15.7 million, from ?7.9 million in 2004.

Posting its preliminary annual results Innovata had an operating loss of ?3 million, from ?12million the year before.

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