SkyePharma announces review after unsolicited bid

SkyePharma has said that it is reviewing its strategic options, including the possibility of a company sale, after receiving an unsolicited bid. The company announced that it has employed the US investment bank to conduct the review.

SkyePharma is currently valued at almost ?350 million. As well as producing its own pharmaceuticals, the company specialises in developing technologies to counter competition from generic drug manufacturers through improved drug delivery.

SkyePharma shares rose seven pence to 53p in early trading, and closed at 48p. Its shares hit a ten month low in October when the firm announced a deeply discounted rights issue to raise ?35 million to finance final trials of Flutiform, its biggest drug. Talks with a potential partner to help develop the product ended without resolution two months ago.

The identity of the potential suitor remained unknown, with some analysts speculating that it was likely to be a private equity firm looking for an opportunistic purchase after the recent sharp fall in company share prices.

“It’s more likely to be a private equity firm that is interested in acquiring the company because SkyePharma has a broad range of smaller products that is less attractive to a big pharmaceutical company,” Charles Stanley analyst Jeremy Batstone told the Guardian.

“A private equity firm could extract more value by keeping some parts of the business and selling off other parts,” he added. Others have speculated that rivals such as US drug delivery firm Alkermes could be behind the approach, or existing SkyePharma partners US company Endo Pharmaceuticals and privately owned Zeneus Pharma.

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