SKP.L Regulatory News (SKP)

26 Jun 2007 07:02

Skyepharma PLC26 June 2007 FOR IMMEDIATE RELEASE SkyePharma Licenses Sleep Therapeutic SKP-1041 to Somnus Therapeutics LONDON, UK, Tuesday, June 26, 2007 - SkyePharma PLC (LSE: SKP) today announcesthat it has entered into an exclusive agreement with Somnus Therapeutics ('Somnus') for the worldwide development and commercialisation of its sleeptherapeutic, SKP-1041. SKP-1041 is a new controlled release formulation of anon-benzodiazepine hypnotic agent which utilises SkyePharma's GeoclockTMtechnology. As part of the agreement, SkyePharma will formulate and manufactureSKP-1041. Recent estimates suggest that the worldwide market for hypnotics is $3billion. Under the terms of the agreement, SkyePharma could receive up to $35 million inmilestone payments, of which $4 million is payable on signature, up to $11million is payable during the development phase, mainly on product approval and$20 million is sales-related. The first milestone payment will be triggered bythe successful completion of the Phase I clinical study of the product.SkyePharma will also receive a royalty on future sales escalating upwards fromhigh-mid single digit. In addition, Somnus will be responsible for the majorityof the development and clinical trial costs. SkyePharma's Chief Executive, Frank Condella, said: "We are very pleased to beworking with Somnus Therapeutics to develop and bring to market SKP-1041, whichwe believe will be an exciting new product for patients with sleep disorders." For further information please contact: SkyePharma PLC Frank Condella +44 20 7491 1777 Ken Cunningham Peter Grant Financial Dynamics (UK Enquiries) David Yates +44 20 7831 3113 Deborah Scott Trout Group (US Enquiries) Christine Labaree +1 617 583 1308 Seth Lewis Somnus Therapeutics Linda Hogan +1 609 683 3671 About SkyePharma PLC Using its proprietary drug delivery technologies, SkyePharma develops newformulations of known molecules to provide a clinical advantage and life-cycleextension. The Company has eleven approved products in the areas of oral,inhalation and topical delivery. The Group's products are marketed throughoutthe world by leading pharmaceutical companies. For more information, visitwww.skyepharma.com About Somnus Therapeutics Somnus is a private drug development company formed by Care Capital LLC andbased in New Jersey. SkyePharma's Non-Executive Chairman, Dr Jerry Karabelas, isa partner in Care Capital LLC. In view of his position, Dr Karabelas has notparticipated in any SkyePharma PLC Board discussions concerning this agreement. This information is provided by RNS The company news service from the London Stock Exchange