Skyepharma:Trying To Take Off From a Short Runway

by Melanie A. Senior

Opportunities for drug delivery companies abound, but those playing in the field have not had an easy time capitalizing on these opportunities to provide the new formulation edge that gives the dosing advantages, or extends the patent life. Many companies back in the mid-nineties bailed out or were sold. The successful ones, such as Alza Corp. (recently acquired by Johnson & Johnson for $13.1 billion[See Deal]) and Elan Corp. PLC , have since felt the need to get beyond the fee-for-service into the more profitable work of selling proprietary drugs. So they built their own product development arms and now count delivery as just one part of a broader pharmaceuticals business—as do many specialty pharmaceutical companies, such as Shire Pharmaceuticals Group PLC , ML Laboratories PLC or Galen Holdings PLC