BioCentury
ARTICLE | Finance

Ebb & Flow

April 2, 2007 7:00 AM UTC

At the beginning of this year, SkyePharma (LSE:SKP; SKYE) laid out three goals it wanted to meet in 2007: complete a restructuring of its royalty financing with Paul Capital, divest its injectable business and complete a placing of its shares. Its aim was to get enough cash to focus on the development of Flutiform fluticasone, a Phase III candidate to treat asthma. Last week, SKP announced that it had accomplished all three, with the fundraising contingent on the other two.

SKP restructured its long-standing deals with Paul Capital, which had provided $30 million in 2000 and again in 2002. For this $60 million, SKP gave Paul an interest in royalties on 14 products, including the injectable unit's two products. In 1H06, those royalty payments totaled £5.9 million ($11.5 million). ...