26/03/2007
LONDON and NEW YORK, March 26 /PRNewswire/ --
- Restructuring Provides Flexibility for SkyePharma to Divest Injectables
Business
Paul Capital Healthcare today announced that it has restructured its two
investments in SkyePharma PLC (Nasdaq: SKYE; LSE: SKP). As part of the
amended agreements, Paul Capital has converted its royalty participation in
14 of SkyePharma's marketed and pipeline products into a US$92.5 million
secured note, with additional contingent payments linked to the future sales
performance of DepoDur, a pain management product of SkyePharma's injectables
business which has been divested today.
"We've been long-term partners and supporters of SkyePharma since 2000 as
the Company has advanced many of its development stage products successfully
to commercialization," commented Dr. Ken Macleod, a principal at Paul Capital
Healthcare who manages its European operations. "We are pleased that by
restructuring our agreements, we can provide Skye with the flexibility it
needs to maximize value for its shareholders today and in the future."
By restructuring its investments in the company, Paul Capital has
assisted SkyePharma's simultaneous divestiture of its U.S.-based injectables
business. This divestiture will allow SkyePharma to focus on developing its
inhaled and oral products, including its lead product, Flutiform, and will
also reduce a significant source of cash burn for the company. In addition,
by simplifying SkyePharma's balance sheet, the amended agreements facilitate
a pending equity infusion by institutional investors.
"Paul Capital Healthcare has been a long-term financing partner to
SkyePharma and has been flexible in restructuring its investments to support
our future growth," commented Peter Grant, Chief Financial Officer of
SkyePharma.
Paul Capital Healthcare's initial investments in SkyePharma, which were
made in 2000 and 2002, funded the development of the company's lead
development stage products. The 2002 investment also funded the acquisition
of RTP Pharma, which provided SkyePharma with the drug delivery technology
that allowed the company to develop Triglide, which is marketed in the U.S.
by Sciele.
About Paul Capital Partners and Paul Capital Healthcare
Paul Capital Partners manages nearly US$5 billion in equity capital
commitments for its three investment platforms that include healthcare direct
investments (including royalty and revenue interests in healthcare products),
Private Equity Secondaries and Top Tier Fund-of-Funds. The firm has offices
in New York, San Francisco, Paris, London and Toronto. Paul Capital
Healthcare is one of the largest dedicated healthcare funds globally, with
US$1.4 billion in equity capital commitments and debt facilities under
management. Paul Capital Healthcare has made investments in the
pharmaceutical, biotechnology, and medical device sectors valued at more than
US$850 million. These investments are focused on commercial stage companies
and products, and consist of investments in the form of royalties, revenue
interests, debt and equity. For more information, visit
www.paulcapitalhealthcare.com.
About SkyePharma PLC
Using its proprietary drug delivery technologies, SkyePharma develops new
formulations of known molecules to provide a clinical advantage and
life-cycle extension. The Group has nine approved products in the areas of
oral, inhalation and topical delivery that are marketed throughout the world
by leading pharmaceutical companies. For more information, visit
www.skyepharma.com.
Web site: http://www.paulcapitalhealthcare.com
http://www.skyepharma.com
Paul Capital Healthcare
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