BioCentury
ARTICLE | Finance

Debt riddance

SkyePharma looks to clear debt, open doors for product development, M&A

April 14, 2014 7:00 AM UTC

SkyePharma plc (LSE:SKP) thinks it is worth giving away a pound of flesh to remove a debt overhang that was sucking up more than half of its free cash in recent years and limiting product development and M&A opportunities.

On March 31, SkyePharma proposed to raise £112.1 million ($186.5 million) through the sale of 58.7 million shares at 191p. The price is a 5% discount to the stock's close of 201.5p on March 28, the last trading day before the deal was announced...