Skye Pharma Investment

Micap Plc announces strategic investment from SkyePharma Plc

LONDON, UK, 14 January, 2003 -- SkyePharma PLC (NASDAQ:SKYE; LSE:SKP) announced today a strategic investment in Micap PLC (Wigan, UK), a private company providing patented micro-encapsulation technology to the food, cosmetic, agrochemical and pharmaceutical industries. SkyePharma has subscribed for 2,500,000 Ordinary Shares at a price of £0.80 as part of a fundraising of 3,125,000 Ordinary Shares approved by Micap’s shareholders at an Extraordinary General Meeting on 13th January 2003. The remaining 625,000 Ordinary Shares were subscribed for by the Sigma Technology Venture Fund, an existing shareholder.

SkyePharma has also obtained an Option for the use of the technology for Drug Delivery. Over the next twelve months SkyePharma will investigate the pharmaceutical applications of Micap’s micro-encapsulation technology, particularly in the areas of oral and topical drug delivery. SkyePharma can exercise its option to complete a technology access and license agreement, the terms of which are agreed, at the end of this period. In addition SkyePharma will be paid for the services it performs during the investigation period.

Michael Ashton, SkyePharma’s Chief Executive Officer, commented, “Micap’s agreement with Firmenich, the 3rd largest flavour and fragrance company worldwide, validates this technology’s capability to deliver an intense burst of active substance to mucous membranes in the mouth. An obvious application of this for SkyePharma is to mask the unpleasant taste of a fast-dissolving, oral dosage form. However, we can see many other opportunities, including an extension of gastrointestinal transit time resulting in improved bioavailability or enhanced topical delivery, both of which exploit the technology’s mucoadhesive properties.”

Michael Norris, Finance Director at Micap commented, “The support of a pharmaceutical development company like SkyePharma enables us to rapidly and effectively explore opportunities to create more effective drugs by combining our experience of micro-encapsulation technology with SkyePharma’s drug delivery, formulation and development expertise.”

SkyePharma PLC develops pharmaceutical products benefiting from world-leading drug delivery technologies that provide easier-to-use and more effective drug formulations. There are now nine approved products incorporating three of SkyePharma’s five technologies in the areas of oral, injectable, inhaled and topical delivery, supported by advanced solubilisation capabilities. For more information, visit www.skyepharma.com.