LONDON and NEW YORK, March 26 /PRNewswire/ -- Paul Capital Healthcare today announced that it has restructured its two investments in SkyePharma PLC . As part of the amended agreements, Paul Capital has converted its royalty participation in 14 of SkyePharma's marketed and pipeline products into a $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 $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 $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 $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.
Paul Capital HealthcareCONTACT: Fern Lazar, +1-917-362-2264, flazar@lazarpartners.com, or KellieWalsh, +1-914-830-4973, kwalsh@lazarpartners.com, both of Lazar Partnersfor Paul Capital Healthcare
