SkyePharma struggles to refinance during UK credit crunch

UK drug-delivery specialist SkyePharma is suffering under the current credit crunch as it struggles to refinance in the face of upcoming convertible bond repayments. The firm is due to refund bondholders a total of L89.6 million ($176.5 million), L69.6 million as soon as May 2009, and the further L20.0 million due by June 2010. The firm has previously noted that it will not be able to repay the bonds without refinancing and this week it announced that initial plans to do so have met with difficulties due to the current state of the market. The one hope for the firm was its Flutiform (formoterol and fluticasone; Marketletter August 13) asthma treatment, which received an unexpected query last year from the US Food and Drug Administration regarding an aspect of the design of the clinical trial program, delaying the filing of its New Drug Application.