6th Feb 2006 07:01
Skyepharma PLC06 February 2006 For Immediate Release 6 February 2006 SkyePharma PLC SkyePharma makes senior appointments LONDON, UK, 6 February 2006 - SkyePharma PLC (LSE: SKP; Nasdaq: SKYE) announcesthat it has appointed a new senior management team comprising Frank Condella asChief Executive and Dr Ken Cunningham in the newly created post of ChiefOperating Officer. This new role will focus on ensuring the effectivedevelopment of SkyePharma's key products such as Flutiform(TM). Frank C. Condella Jr. was President of the European operations of IVAX prior toits acquisition by Teva for more than $7 billion in 2005. He was closelyinvolved with IVAX's respiratory franchise, one of its three core therapeuticareas, including managing the acquisition and integration of 3M's brandedrespiratory business. Prior to joining IVAX in 2002, he occupied senior roles atFaulding Pharmaceuticals, Roche, and the Lederle unit of American Home Products.Mr Condella, who is American, has a BS Pharm degree and an MBA from NortheasternUniversity in Boston. Mr Condella, SkyePharma's newly appointed Chief Executive, said: "I support thenear-term strategy recently outlined by the board and am confident that our newmanagement team can effectively implement it. I believe that my experience ingrowing global pharmaceutical businesses whilst closely managing costs will bean important asset as we work together to build long-term shareholder value." Dr Ken Cunningham was Chief Executive of the privately owned UK biotechnologycompany Arakis, recently acquired by the Japanese company Sosei for $200million. Dr Cunningham has extensive experience in the development ofrespiratory products and the Arakis lead product, a treatment for chronicobstructive pulmonary disease (COPD), was licensed to Novartis in 2005 in a dealworth up to $375 million. Prior to his appointment to the Arakis role in 2002,he was Vice President, International Affairs for Alza and before that was VicePresident for Clinical Development for Sequus Pharmaceuticals. Prior to that heheld a variety of clinical development and commercial strategy positions inGlaxo Wellcome and Warner-Lambert. Dr Cunningham qualified from St Mary'sMedical School, London University. Dr Cunningham said: "I am very excited about joining SkyePharma and helpingdrive the development of new oral and respiratory products, including Flutiform(TM) which I believe will deliver significant benefit to asthma sufferers. I also look forward to working with Frank Condella and the Board to build a leading international speciality pharmaceutical business." Dr Jerry Karabelas, SkyePharma's Chairman, said: "I am delighted that Frank andKen have chosen to join SkyePharma. It is a testament to their character thatthey have made the decision to come on board at such a challenging moment. Theybring a combination of proven skills, relevant experience and strong reputationin the pharmaceutical industry, meaning that SkyePharma now has the ideal teamto lead the company forward. "I hope that the appointment of Frank and Ken will prompt recognition amongstthe shareholders who have called for an Extraordinary General Meeting ("EGM")that they are the best possible team to lead SkyePharma. I appeal to them toreconsider their moves to appoint Mr Robert Thian as executive Chairman via anEGM. Both Frank and Ken have current and highly relevant pharmaceutical industryexperience. By contrast Mr Thian has not had an executive role inpharmaceuticals since 1989 and has limited visibility in the industry, his mostrecent experience having been mainly restricted to water utilities andseparation technology. I strongly believe that the new team should be given theopportunity to realise the potential in SkyePharma." Both Mr Condella and Dr Cunningham have expressed their intent to purchaseshares in SkyePharma as soon as they are able as a mark of their confidence inSkyePharma and recognition of the potential within the Company. The selection process The Board of SkyePharma strives to represent the wishes of all shareholders. TheNominations Committee therefore met with Robert Thian, Chairman of Whatman andSouthern Water, and the candidate proposed by a minority group of investors forelection to the Board and appointment as Chairman. The possibility of hisjoining the Board solely as a non executive director was raised but Mr Thianinformed the Nominations Committee that he had no interest in non-executiveposts. It is the view of the SkyePharma Board that Mr Thian already hassubstantial board commitments and that adding an executive role at SkyePharmawould exceed his available capacity, particularly given the need for him toaddress the problems at Whatman in light of its recent profits warning. The Board of SkyePharma believes that, in accordance with best CorporateGovernance practice, its Chairman should be non-executive and also that heshould have recent relevant experience of the therapeutic areas in whichSkyePharma operates. The appointment of Dr Jerry Karabelas as Non-ExecutiveChairman was announced on 2 February. Dr Karabelas, who had senior roles at twomajor league pharmaceutical companies as Chief Executive of Novartis Pharma andPresident of North American operations for SmithKline Beecham, satisfies theserequirements, but Mr Thian lacks this crucial experience. The second major criterion is that SkyePharma needs a senior management teamthat can work together to maximise the value in the development pipeline. Thatis why the Board has decided to appoint Dr Karabelas, Mr Condella and DrCunningham. In contrast Mr Thian's reputation has been built on restructuring.At Whatman this led to the appointment of three Chief Executives in three years.Three years after his appointment as Chairman, Mr Thian announced yet morechanges to his Board last month and conceded that management problems were thecause of Whatman missing market expectations. Board structure Michael Ashton will continue to act as SkyePharma's Chief Executive until 1March, when Frank Condella can take up his appointment, and will remain on theBoard as a non-executive director until the next Annual General Meeting ("AGM")in June 2006. Neither Mr. Condella nor Dr. Cunningham will join the Boardimmediately but it is anticipated that the new executives will join the boardprior to the AGM so that their appointments can be voted on by shareholders atthat time. For further information please contact:SkyePharma PLC Michael Ashton, Chief Executive +44 207 491 1777Peter Laing, Director of Corporate Communications +44 207 491 5124Sandra Haughton, US Investor Relations +1 212 753 5780 Buchanan Communications +44 207 466 5000Tim Anderson / Mark Court Notes for editors About SkyePharma SkyePharma PLC develops pharmaceutical products benefiting from world-leadingdrug delivery technologies that provide easier-to-use and more effective drugformulations. There are now eleven approved products incorporating SkyePharma'stechnologies in the areas of oral, injectable, inhaled and topical delivery,supported by advanced solubilisation capabilities. For more information, visitwww.skyepharma.com. About SkyePharma's selection process for senior executives During 2005 Ian Gowrie-Smith, the Company's Non-Executive Chairman, indicated tothe Board his intention to stand down when a suitable replacement could beidentified. Mr Gowrie-Smith subsequently announced his resignation as Chairmanon 23 January 2006. Michael Ashton, Chief Executive, also announced in Novemberlast year that it was his intention to retire in 2006 on reaching the age ofsixty. In accordance with SkyePharma's Corporate Governance procedure, theNominations Committee of the Board, comprised of non-executive directors, ischarged with reviewing candidates for senior roles and making recommendations tothe Board. The Nominations Committee has interviewed a number of candidates forthe positions of Chairman, Chief Executive and Chief Operating Officer and hasmade recommendations to the Board for these appointments. The Board hasunanimously approved these recommendations. Certain statements in this news release are forward-looking statements and aremade in reliance on the safe harbour provisions of the U.S. Private SecuritiesLitigation Act of 1995. Although SkyePharma believes that the expectationsreflected in these forward-looking statements are reasonable, it can give noassurance that these expectations will materialize. Because the expectations aresubject to risks and uncertainties, actual results may vary significantly fromthose expressed or implied by the forward-looking statements based upon a numberof factors, which are described in SkyePharma's 20-F and other documents on filewith the SEC. Factors that could cause differences between actual results andthose implied by the forward-looking statements contained in this news releaseinclude, without limitation, risks related to the development of new products,risks related to obtaining and maintaining regulatory approval for existing, newor expanded indications of existing and new products, risks related toSkyePharma's ability to manufacture products on a large scale or at all, risksrelated to SkyePharma's and its marketing partners' ability to market productson a large scale to maintain or expand market share in the face of changes incustomer requirements, competition and technological change, risks related toregulatory compliance, the risk of product liability claims, risks related tothe ownership and use of intellectual property, and risks related toSkyePharma's ability to manage growth. SkyePharma undertakes no obligation torevise or update any such forward-looking statement to reflect events orcircumstances after the date of this release. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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