Notice of early repayment of Euro CRC Facility

Skyepharma announces notice of early repayment of Euro CRC Facility

LONDON, ENGLAND, 22 September 2014 - Skyepharma PLC (LSE: SKP), the expert oral and inhalation drug delivery company, today announces that it has given notice to CRC European Loan Origination Platform Limited ("CRC") of its intention to repay the entire outstanding Euro principal of the CRC Finance facility.

The outstanding Euro principal of €12.7 million (£10.0 million at current rates) will be repaid on 3 October 2014 at a cost of £10.6 million (at current rates) including accrued interest and a make-whole amount of 5.2%. The early settlement of this part of the facility will save the Skyepharma Group £1.8 million of finance costs (net of the make-whole amount) compared with the amounts which would otherwise be payable based on current interest rates through to the normal maturity date of 31 December 2016.

Following this repayment, the CRC Finance facility will consist of a U.S. Dollar principal of U.S.$16.3 million (£10.0 million at current rates), with an overall interest rate currently at 10.2%. The overall interest rate applied to the Euro principal is currently 13.2%.

The early repayment is being funded out of the Group's general cash resources allowing for the expected receipt of the U.S.$8 million milestone for EXPAREL® recognised in June and due to be received by 30 September 2014.

Andrew Derodra, Chief Financial Officer of Skyepharma, commented: 

"Early settlement of the Euro element of CRC Finance generates £1.8 million of savings and marks continued improvement in the Group's liquidity following the repayment of the bond debt in April, further growth from eight products launched or approved since March 2012 and receipt of the first U.S.$8 million EXPAREL® sales milestone due by 30 September. We will continue to review further opportunities to retire expensive debt whilst retaining sufficient capacity to invest in the developing portfolio and support growth of existing marketed products."

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About Skyepharma PLC

Skyepharma combines proven scientific expertise with validated proprietary drug delivery technologies to develop innovative oral and inhalation pharmaceutical products. The Group is eligible for revenues from 16 approved products in the areas of inhalation, oral, topical and injectable drug delivery as well as generating income from the development of further products and technology licenses. The products developed by the Group are marketed throughout the world by big pharma as well as speciality pharmaceutical companies. For more information, visit www.skyepharma.com