Skyepharma ends production of PULMICORT

7th Mar 2011 16:13

The share price recovery of Skyepharma was brought to an abrupt halt Monday as the company said it is to stop production of its PULMICORT pressurised metered dose inhaler due to complex manufacturing issues related to technical aspects of the device. The device will remain on sale until existing supplies are exhausted, the drug delivery specialist said. Skyepharma earns a "mid-teens" royalty on AstraZeneca's net sales of the product. Royalties from this product in the first half of 2010 and full year 2009 comprised about 5% of SkyePharma's revenues. Skyepharma expects the agreements it has with Astra relating to the product will be terminated as a result of the decision to halt production. Following any termination of these agreements, certain rights for the product will revert or be licensed to Skyepharma and the company intends to explore whether a sublicense of these rights may be of interest to other parties.