SkyePharma proposes injectables divestment

SkyePharma has announced the proposed divestment of its injectables business to Blue Acquisition for a sum potentially exceeding 47.2 million pounds, dependent on development milestones and future sales.

Under the terms of the deal, SkyePharma will receive an initial payment of 10.2 million pounds, less costs of one million pounds paid into escrow, with up to 31.7 million dependent on development milestones, with additional payment of a percentage of royalties to be paid for a fixed period of time.

The divestment is contingent on shareholder approval, with an extraordinary general meeting to be held at the start of February.

Frank Condella, chief executive of SkyePharma, said: “The proposed disposal will relieve the company of a significant cash burn due to operating losses and the potential costs of future development and capital expenditure of the injectable business.”

He added that the divestment would allow the company to focus on the development of its strategic oral and inhalation products to increase the value of the firm.

Last month, the company announced that it had entered into an agreement with the Ireland-based Christofferson, Robb & Company lending company to secure a 10-year amortising loan facility of approximately 35 million pounds.