SkyePharma in manufacturing alliance with Aenova Group; amends CRC finance facility

UK drug firm SkyePharma PLC (LSE: SKP) has agreed terms to enter into an alliance with the Aenova Group to increase utilization of SkyePharma’s manufacturing facility in Saint Quentin-Fallavier, near Lyon, France. The news saw the UK company's shares leap 24.8% to 66.1 pence by close of trading yesterday.

Aenova France SAS, a wholly-owned subsidiary of Aenova Holding GmbH, a German-based pharmaceutical contract manufacturing organisation, has agreed to lease the entire pharmaceutical manufacturing business and the premises at Saint Quentin-Fallavier, for an initial period of two years, extendable for a further three years. During the lease period the parties may have further discussions to extend the Alliance beyond the fifth anniversary.

The alliance will provide Aenova with access to a Food and Drug Administration-registered pharmaceutical manufacturing facility which has significant available capacity and SkyePharma will benefit from rental income from Aenova. By introducing additional products to the facility, the alliance aims to increase utilization rates and reduce the dependency on relatively few products and the risk of losses in the manufacturing business.