SkyePharma PLC has entered into an agreement with First Horizon Pharmaceutical Corporation to develop a novel controlled-release version of Sular (nisoldipine), an antihypertensive that is First Horizon's largest product. The SkyePharma version is designed to have an improved pharmacokinetic profile and is expected to replace the current version and to expand the market opportunity for Sular.

Frank Condella, SkyePharma's CEO said, "SkyePharma's core competency is the development of improved formulations of existing products. This new agreement reinforces our activities in this area now that we are focusing on our core business of oral and inhalation products. We are also pleased to expand our collaboration with First Horizon, a fast growing US pharmaceutical company."

According to the release, SkyePharma will receive a mid-single digit royalty on net sales of Sular CR. SkyePharma will also receive a total of up to $5 million in milestone payments. $1 million has been paid at signing and up to $4 million will be paid conditional on obtaining approval by the US FDA, which is expected in 2008. SkyePharma may manufacture and supply the product from its Lyon manufacturing facility. First Horizon will fund all of SkyePharma's development costs for Sular CR and will market this product through its speciality sales force.

Nisoldipine, the active ingredient in Sular, is an antihypertensive agent used to reduce blood pressure. Nisoldipine is a calcium channel blocker that prevents calcium from entering certain types of muscle cells. Because muscle cells need calcium to contract, calcium channel blockers prevent the cells from contracting and cause them to relax. Nisoldipine selectively relaxes the muscles of small arteries causing them to dilate but has little or no effect on muscles or the veins of the heart.