mali quote - 17nov

LINESAL1, as always you 'shout off' without thought, wanna impress your buddies, try the MONI thread

READ the press, this company has been held up simply because RBOS want a satisfactory conclusion to its debt repayment
the future of the company has been many times stated as virtual bankrupt, selling the rights has sealed that

READ BELOW if you are capable ...


LONDON (AFX) - Bioglan Pharma PLC transferred its rights to market and sell
SkyePharma PLC's new Solaraze skin treatment in North America to Quintiles
Transnational Corp for 15 mln stg.
The announcement means a last-minute reprieve from bankruptcy for Bioglan,
though it warned that if there is no satisfactory outcome to current talks with
potential bidders or financial backers, it won't have enough working capital to
see out the next 12 months.
It said that, if the Quintiles deal had not been agreed immediately, "the
company would have been unable to meet its financial commitments as they fell
due and consequently would have been unable to continue to trade, resulting in
the appointment of receivers/liquidators/ administrators," it said.
Bioglan said it is talks with potential bidders for the company and with
other potential financiers about a recapitalisation of the company. But it added
that, without any new agreement bringing funds in, it does not have enough
working capital for the next 12 months, though the Quintiles deal means it will
be able to make it through to the end of its financial year in January.
It said it is unlikely that any offer for Bioglan would exceed its current
level of debt.
The deal with Quintiles comes after SkyePharma took steps to tear up its
agreement with Bioglan after Bioglan had got into financial difficulties.
Bioglan had been negotiating the multi-million dollar acquisition of a range
of dermatology products in the US and had invested heavily in a new sales and
marketing organisation there.
But, after disagreements over fundraising and board resignations, the deal
collapsed, leaving Bioglan financially stretched.
Solaraze is a skin cream for treating a skin complaint that often develops
into skin cancer. The product has already been launched in Europe, under a
continuing licensing agreement with Bioglan.
Bioglan said that, following the agreement on the North American rights to
Solaraze, its banks have agreed to extend its debt standstill arrangements until
the end of January. The previous agreement was due to run out today.
Bioglan said the money it is getting from Quintiles will enable it to meet
its projected borrowing requirements in December and January.
"Although there can be no assurances that the existing financing will be
extended beyond Jan 31, Bioglan remains in active discussion with its banks and
certain third parties with a view to achiev a longer-term solution for the
company, " it said.
Bioglan has also agreed to increase payments to SkyePharma under the
continuing Solaraze contract.
Bioglan had been due to pay SkyePharma 10 mln usd by the end of this month.
It said it will increase that to 12.5 mln usd due immediately, which will be
paid out of the Quintiles proceeds.
As part of the deal, SkyePharma has agreed that Bioglan is no longer in
breach of its obligations under the Solaraze Contract, as it had previously
claimed.
Bioglan said that, though the North American Solaraze contract had been
expected to generate substantial long term revenues, the deal with Quintiles is
in the best interests of the company "in view of the current situation".
Bioglan said it expects to be contracted to undertake certain services for
Quintiles in relation to Solaraze, including marketing, distribution, promotion
and manufacturing, for which Bioglan will receive a revenue stream.
A third party manufacturer carries out manufacturing for Solaraze in the US
under contract.
SkyePharma's chief executive Michael Ashton said that the Quintiles deal
"should remove much of the uncertainty surrounding the commercial future of
Solaraze, which is now essentially isolated from the outcome of Bioglan's
negotiations with its banks and potential partners."
He said SkyePharma is pleased that Quintiles has been recruited as a
partner.
"This is a substantial company with proven sales and marketing experience.
We are confident that, with their backing and experience, we have a strong
partnership ready to promote Solaraze when it is launched in the US in January."