SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a - 16 OR 15d - 16 OF
THE SECURITIES EXCHANGE ACT OF 1934
For the month of March, 2006
SkyePharma PLC
SkyePharma PLC, 105 Piccadilly, London W1J 7NJ England
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40F.
Form 20-F X Form 40-F
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes No X
If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- _______
For Immediate Release 2 March 2006
This is a summary - the detailed release will be issued later today
SkyePharma Responds to Allegations
Made by North Atlantic Value Group
LONDON, UK, 2 March 2006 - SkyePharma wishes to respond to certain unsubstantiated allegations made today by a minority group of
shareholders ("the NAV group") in a circular to SkyePharma's shareholders. The vast majority of the shareholdings held by the NAV
group have been acquired in the last nine months.
Until today the Company has not been able to respond with a detailed rebuttal as the EGM requisition and subsequent letters from the
NAV group have only cited unspecified "corporate governance issues".
. The allegations made by the NAV group are without substance and they continue to offer no strategy for taking SkyePharma
forward.
. All NAV group's claims concern matters detailed in SkyePharma's reports and accounts and other documents before they
invested. NAV group cannot claim they were unaware of these facts unless they failed to review these publicly available
documents.
. We agree with their statement that SkyePharma has an "excellent and potentially very valuable product portfolio". This has
been built by the current Board.
. SkyePharma has appointed a new non-Executive Chairman, Chief Executive and Chief Operating Officer. The appointment of an
Executive Chairman would make them redundant no matter what the NAV group has implied in the media.
. The NAV group's activity has severely undermined the current share price in the Board's opinion.
. The Board of SkyePharma continues to advise shareholders to vote AGAINST the resolutions proposed at the EGM.
Summary response details follow:
"A HISTORY OF DISAPPOINTING ITS SHAREHOLDERS"
Drug development is a long-term process. Predicting the timing of commercialisation is difficult. SkyePharma has always provided the
clearest most accurate estimates possible. SkyePharma has a new Chairman and management team dedicated to delivering its new strategy
which is designed to move the Company into profitability as soon as possible.
"CONTRACTS WITH QUESTIONABLE VALUE TO SHAREHOLDERS"
All investments are made as part of the Company's commercial relationships and usually as part payment to SkyePharma. Some have
resulted in capital gains and others have not. To protect its investments, SkyePharma requests a board position, after - not before -
it invests as a common practice. All information on this has been detailed in the Annual Reports.
"AN INFLATED CORPORATE COST BASE"
SkyePharma's New York offices were rented on an arm's length basis on terms based on independent real estate valuations. The cost of
the London office is £42 per sq ft over five years, not £80 as suggested by the NAV group. These offices are not expensive or lavish
- but management is already reviewing all corporate overheads, including the London and New York offices.
"ROBERT THIAN'S SUITABILITY"
In the view of the Board, Robert Thian is unsuitable to be Executive Chairman. His last executive pharmaceutical experience was in
1989. He lacks the technical training, experience and qualifications. Dr Karabelas and his newly appointed team have current,
relevant experience. They are highly qualified and have exemplary track records.
Dr Jerry Karabelas, Chairman said:
"NAV offer no substance, no strategy, just distortion. NAV would destroy SkyePharma with an 18 month review when new management is
already moving the Company forward rapidly.
"This is a crucial moment for shareholders. The choice is to back the Company's coherent strategy or to listen to vague
unsubstantiated slurs.
"The Board of SkyePharma believes that all of the above allegations are completely unfounded and have no basis in fact. They have
been contrived by the NAV group for their own ends."
For further information please contact:
SkyePharma PLC +44 207 491 1777
Frank Condella, Chief Executive Officer
Peter Laing, Director of Corporate Communications +44 207 491 5124
Sandra Haughton, US Investor Relations +1 212 753 5780
Buchanan Communications +44 207 466 5000
Tim Anderson / Mark Court
SkyePharma wishes to remind Shareholders that they are entitled to attend and vote at the meeting and/or may appoint a proxy to
attend on their behalf. The Board strongly advises Shareholders to vote AGAINST the resolutions by completing, signing and returning
the Form of Proxy (which was sent together with the Notice of Extraordinary General Meeting dated 16 February 2006). The completed
proxies should be returned as soon as possible so as to arrive at Capita Registrars, The Registry, 34 Beckenham Road, Beckenham Kent,
BR3 4TU not later than 11 am on 7 March 2006.
SkyePharma plc has appointed Salisbury Associates as its Shareholder Communications Advisor. Salisbury Associates have established
the following Toll Free Shareholder Helplines:
If you have any questions regarding the contents of the documents you have received, please call the appropriate Shareholder
Information Hotline
In the UK
0800-035-2220
In North America
011800-3231-3233
From other International sites
+44 1494 840 812
The helpline hours are:
9:00am - 5:00pm UK time Monday to Friday from 17 February 2006
9.00an - 5.00pm EST in North America
Please note that your call maybe recoreded for quality assurance and training purposes.
END
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
SkyePharma PLC
By: /s/ Douglas Parkhill
Name: Douglas Parkhill
Title:
Company Secretary
Date: March 2, 2006