SkyePharma sees 83% response to rights offering; CSFB places remaining shares

New York, Nov. 3 - SkyePharma plc said that existing holders of 83% of its ordinary shares participated in the company's one-for-five rights issue. In addition, Credit Suisse First Boston (Europe) Ltd. sold the shares not taken up.

By the acceptance deadline of 6 a.m. ET on Nov. 2, rights for 103,915,282 ordinary shares were accepted from current investors, the company said.

The remaining 21,712,075 shares on offer were sold by CSFB at a price of 37p each.

SkyePharma now has 753,764,146 ordinary shares outstanding.

The company announced on Sept. 28 that it was offering 125.6 million new ordinary shares at 30p each to existing shareholders in the one-for-five rights issue.

By selling the additional shares, SkyePharma intended to raise about £35 million to fund phase III trials for its new asthma drug Flutiform. The additional funds would avoid the need to find an out-licensing partner.

By proceeding with phase III development at its own expense, SkyePharma said it believes it can seek a marketing partner or partners at a later stage on substantially better terms.

Flutiform is a fixed-dose combination of formoterol and the inhaled steroid fluticasone. It has completed a phase II trial review by the U.S. Food and Drug Administration, and SkyePharma has submitted an application to begin phase III trials in early 2006 with a target filing date of mid-2007.

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