The proof is in the monetizing

Buying a tarnished product is always risky, especially when the prior owner concluded that it could not survive even if the product were approved. But SkyePharma plc now will have the opportunity to prove it got a bargain in its 1998 acquisition of DepoTech Corp., following last week's FDA approval of DepoCyt to treat lymphomatous meningitis (LM).

SkyePharma (LSE:SKP; SKYEY, London, U.K.) estimates that DepoCyt, an injectible sustained release formulation of cytarabine, has potential to garner $50 million in U.S. sales in three years, while DepoTech spent about $100 million developing the product...