Grant of licence for pharmaceutical applications

Micap plc announces the grant of its first pharmaceutical licence. SkyePharma plc will use the Micap™ microencapsulation technology for up to 10 pharmaceutical products. Micap plc (“Micap”) (LSE:MIC), the UK technology licensing company specialising in the microencapsulation of active ingredients within yeast cells, today announces a major development in its pharmaceutical business. , SkyePharma plc (“SkyePharma”) (LSE:SKP), the UK-based developer of drug delivery technologies for the pharmaceuticals industry, has exercised an option to acquire an exclusive licence to use Micap’s patented microencapsulation technology. This allows SkyePharma to use Micap’s technology for the delivery of hydrophobic drugs in up to ten nominated pharmaceutical products (“Option Products”) to be selected by SkyePharma.

Under the terms of the agreement SkyePharma will make an initial payment to Micap of £500,000 and ongoing royalties will be payable by SkyePharma to Micap on sales made, or licences of, any Option Product. SkyePharma will make milestone payments on the first successful completion of Phase II and Phase III clinical trials and also on the first commercial launch of an Option Product.

Michael Brennand, CEO of Micap, said: “The granting of our first licence for pharmaceutical applications of our technology is a significant milestone for Micap. The commitment shown by SkyePharma is a major validation of our microencapsulation technology. We look forward to progressing the relationship through clinical trials and product launches. “

Michael Ashton, CEO of Skyepharma, said: “We are pleased with our relationship with Micap. In January last year we agreed to evaluate the application of the Micap microencapsulation technology to the delivery of hydrophobic drugs. Following pre-clinical evaluation of the Micap technology in both oral and topical drug delivery applications, we have now decided to exercise our option. This will enable work to continue on a number of candidate Option Products, which we must nominate by the end of March next year. The Micap technology further expands our growing range of drug delivery options.”

Micap has agreed to assist SkyePharma by continuing to offer specialist support in the encapsulation of certain pharmaceuticals up to 30th June 2004. Thereafter all ongoing costs related to the research, development and commercialisation of the Option Products shall be borne by SkyePharma.