SkyePharma, the UK drug delivery company, has revealed that it intends to reorganise its R & D operations, resulting in job losses. It made this announcement at its end of 2003 trading update, held in January 2004, where it also revealed that it was shortly expecting to sign a number of major new product collaboration deals.

In total, around 10 per cent of SkyePharma's 450-strong workforce could lose their jobs and most of these losses will come from the company's R & D operations. This reorganisation follows the completion of the development phase of SkyePharma's growth; the company asserts that it now needs to align its research capabilities with its projected future R & D activities. A spokesman for SkyePharma told Chemistry World that it will now transfer some of its former R & D activities to its research partners.

SkyePharma had expected to finalise a number of major collaboration deals by the end of 2003, however, difficulties on agreeing financial terms and extensive legal checks have caused delays. Nevertheless, the company is confident that these deals will be signed in 2004, including some relating to a package of products in the pulmonary field.

The company is so convinced of the potential value of these pulmonary products that it has already rejected terms including milestones of up to $90m ( ca £50m) and double digit royalties. However, it recently signed a licence agreement with GlaxoSmithKline for access to one of its pulmonary technologies to help deliver respiratory drugs either by breath-actuated dry-powder inhaler or by metered-dose aerosol inhaler. It has also set up a deal with a US firm called Critical Therapeutics to develop a controlled-release formulation of an oral asthma drug.

Jon Evans