SkyePharma – the originator of Paxil CR – says it has signed a new royalty agreement with GSK and will also receive a $10 million one-off payment. The UK biotechnology company will see a 1% boost to its royalty entitlements, to 4% of net sales from 4 March.
However, as GSK has been unable to supply Paxil CR since this time, SkyePharma will be entitled to the same level of royalty on GSK’s budgeted sales since that time. Michael Ashton, SkyePharma’s Chief Executive, said: “The royalties from Paxil CR are currently the single most important income flow for SkyePharma. We are therefore delighted that GSK has agreed to continue the royalty payment as if supply was maintained. We look forward to continuing our work together with GSK on this and other product collaborations.”
The news came as SkyePharma reported its financial highlights for the first quarter of the year, with turnover up 17% to £62 million and royalty income boosted almost 40% to £26 million. The strong performance helped the company almost halve its net loss to £24 million.