A turnaround for SkyePharma with injectables unit sale for $82M

UK drug development group SkyePharma looks set to alleviate some of its outstanding problems with the sale of its loss-making injectables business to San Diego, USA-based financial company Blue Acquisition for a sum that could exceed $82.0 million.

"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," commented SkyePharma chief executive Frank Condella. "The disposal, placing and Paul Capital refinancing, along with the L35.0 million ($67.7 million) CRC financing announced on December 27, 2006 (Marketletter January 1 & 8), will put SkyePharma in a good position to build future value by further developing our strategic oral and inhalation products," he added.

Blue Acquisition, a consortium of US groups including PMP Capital, OrbiMed and Sanderling Ventures, will make an upfront payment of $20.0 million with a further $62.0 million dependent on future sales of DepoBupivacaine, SkyePharma's development, long-acting injectable formulation of the local anesthetic bupivacaine for the control of post-operative pain.