SkyePharma, Novartis terminate contracts relating to formoterol Certihaler

SkyePharma PLC has reached agreement with Novartis Pharma AG and with a subcontractor on immediate termination of the contracts relating to formoterol Certihaler. The agreements follow the decision not to proceed with US commercialisation of formoterol Certihaler as announced in December 2008. 

The net effect of the termination agreements will result in an exceptional gain to SkyePharma in the 2009 accounts of approximately £5 million leading to a net cash benefit in the second half of 2009 of a similar amount. The cessation of production resulted in a £5.9 million exceptional charge in the Group's 2008 accounts mainly relating to asset write-downs. Following the termination, SkyePharma retains exclusive rights for the SkyeHaler device, used in the formoterol Certihaler, which was approved in the United States in December 2006 for use as a multi-dose dry powder inhaler.