SKP.L Regulatory News (SKP)

6 Apr 2005 07:00

MICAP PLC06 April 2005 6th April 2005 SKYEPHARMA NOMINATES PRODUCTS FURTHER TO EXERCISE OF OPTION AND TRADING UPDATE Micap plc (LSE: MIC), the technology licensing company specialising in themicroencapsulation of active ingredients in yeast cells, today announces thatSkyePharma plc (LSE: SKP, Nasdaq: SKYE) will incorporate Micap's yeast-baseddelivery system in its ongoing development of a further nine (9) pharmaceuticalproducts. This announcement completes SkyePharma's current option agreement withMicap. In March 2004, SkyePharma exercised an option to acquire an exclusive licence touse Micap's patented microencapsulation technology. This allowed SkyePharma touse Micap's technology for the delivery of hydrophobic drugs in up to tennominated pharmaceutical products ("Option Products") to be selected bySkyePharma and in August 2004 the first Option Product was nominated. SkyePharma has, since the first Option Product was nominated, been evaluating anumber of other potential Option Products, using its experience of drug deliverytechnologies to identify those compounds most suitable for the Micap technologyand with the greatest market opportunity and has now nominated the remainingnine (9) Option Products. Whilst the identity of these products cannot bedisclosed for reasons of commercial confidentiality, they are all oral doseageforms and include a combination of proprietary and generic compounds. Under the terms of the March 2004 agreement, royalties will be payable bySkyePharma to Micap on sales made of, or licences granted on, any OptionProduct. SkyePharma will also make milestone payments on the successfulcompletion of Phase II and Phase III clinical trials and also on the commerciallaunch of the first Option Product. Micap will now carry out an optimisation program on the encapsulated compoundsand SkyePharma will undertake formulation and stability studies with a view tocommencement of further pre-clinical trials. Micap continues to be in discussions with a number of partners regardingevaluation, development and licensing deals and hopes to be in a position toinform shareholders of further progress on these negotiations soon. Thesediscussions have been progressing well, however, in some cases they have takenlonger than expected to conclude and whilst costs remain in line withmanagement's expectations, certain access and option fees anticipated to bereceived in the financial year to 31 March 2005 will now fall due in the newfinancial year. The Board is pleased with the significant progress in both the quality andnumber of Micap's partnerships and look forward to positive developments in thecoming months. Michael Brennand, Chief Executive of Micap, said: "The nomination by SkyePharma of their remaining Option Products is asignificant milestone for Micap. Not only are we moving to the next stage ofdevelopment with a world leading drug-delivery company, but the conclusion ofthe Option agreement with SkyePharma allows us to actively market our patentedencapsulation system to other companies within the pharmaceutical market. We areparticularly excited about our opportunity in relation to topical skinapplications of products, where we have recently experienced highly positiveresults in laboratory trials." For further information please contact:Contact: Micap plc +44 (0)1925 664200Michael Brennand, CEO +44 (0)7966 341801Michael Norris, CFO +44 (0)7966 341802 Binns & C PR +44 (0)20 7786 9600Tarquin Edwards/Chris Steele 07879 458 364 / 07979 604 687 Notes for editors: About Micap Micap is a UK technology licensing company specialising in themicroencapsulation of active ingredients within yeast cells. For further detailsvisit www.micap.co.uk. About SkyePharmaSkyePharma develops pharmaceutical products benefiting from world-leading drugdelivery technologies that provide easier-to-use and more effective drugformulations. There are now ten approved products incorporating SkyePharma'stechnologies in the areas of oral, injectable, inhaled and topical delivery,supported by advanced solubilisation capabilities. For more information, visitwww.skyepharma.com. About microencapsulation Microencapsulation is a process whereby tiny droplets of liquid or particles ofsolid material are coated with a continuous film of polymeric material.Microcapsules have several benefits, including conversion of liquids to solids;separating reactive compounds; protecting substances against environmentalfactors; and improving the material handling properties. Micap's uniqueproprietary technology involves using killed yeast cells as natural capsules toprotect the active ingredient. Yeast encapsulation can protect activeingredients against high temperatures, the effects of the sun, pressure anddegradation through exposure to the air. The natural affinity of yeast cells formucous membranes can also be exploited for targeted drug delivery. About hydrophobic drugs Certain pharmaceuticals dissolve readily in oils or organic solvents but arewholly or partially insoluble in water. These hydrophobic drugs pose particulardelivery problems since, in order to be properly absorbed by the body, nearlyall drugs need to dissolve in water. This information is provided by RNS The company news service from the London Stock Exchange