Novartis Licenses SkyePharma Treatment For Asthma

SkyePharma PLC and Novartis Pharma have signed a collaborative agreement to jointly develop a new formulation of Foradil, the long-acting beta-agonist for the treatment of chronic asthma. The new product will utilize SkyePharma's patented multi-dose dry powder inhaler device (MDPI).

Under the terms of the collaboration, SkyePharma will be responsible for developing the product, including the supply of both the powder and the inhalation device as a product to Novartis. Foradil will be manufactured at SkyePharma's Lyon facility in France. In return for a technology access fee, development costs, milestone payments and royalty income on worldwide sales, SkyePharma has granted Novartis an exclusive worldwide license to market Foradil in its novel delivery form.

The bronchodilator is currently marketed in 50 countries and is expected to be launched in the U.S. shortly. SkyePharma received an approval letter from the U.S. FDA in June 1998. Sales of Foradil for the first nine months of 1998 grew by 29%.

Under the terms of the collaboration, Novartis will also make an equity investment in SkyePharma of £6 million ($10.1 million) at 70p per SkyePharma share being the average middle market price of SkyePharma shares based upon the previous 15 days of trading plus a premium of 13%. Novartis will receive 8,628,500 shares or approximately 2% of the outstanding shares in SkyePharma PLC.

For more information: SkyePharma PLC, 105 Piccadilly, London W1V 9FN, UK. Telephone: 00 44 (0)171 491 1777. Fax: 00 44 (0)171 491 3338.