SkyePharma appoints chief executive, chief operating officer

By Angela McDaniels

Seattle, Feb. 6 - SkyePharma plc said it has appointed Frank C. Condella Jr. as chief executive and Ken Cunningham as chief operating officer, a newly created post.

Condella was president of the European operations of IVAX prior to its acquisition by Teva for more than $7 billion in 2005, according to a SkyePharma news release. He was closely involved with IVAX's respiratory franchise, including managing the acquisition and integration of 3M's branded respiratory business.

Cunningham was chief executive of the privately owned U.K. biotechnology company Arakis, recently acquired by the Japanese company Sosei for $200 million. Cunningham has extensive experience in the development of respiratory products and the Arakis lead product, a treatment for chronic obstructive pulmonary disease, was licensed to Novartis in 2005 in a deal worth up to $375 million.

"I hope that the appointment of Frank and Ken will prompt recognition amongst the shareholders who have called for an extraordinary general meeting that they are the best possible team to lead SkyePharma," chairman Jerry Karabelas said in the release.

"I appeal to them to reconsider their moves to appoint Robert Thian as executive chairman via an extraordinary general meeting. Both Frank and Ken have current and highly relevant pharmaceutical industry experience.

"By contrast, Mr. Thian has not had an executive role in pharmaceuticals since 1989 and has limited visibility in the industry, his most recent experience having been mainly restricted to water utilities and separation technology."

On Jan. 30, institutional investors North Atlantic Value LLP, Insight Investment and Morley Fund Management called for a general meeting to appoint Thian, chairman of Whatman and Southern Water plc, as director and to remove any person other than Thian that may have been appointed by the company between then and the meeting.

In response, SkyePharma's board said in a news release that it will, "strenuously oppose any attempts to force a candidate on to the board."

Then, in an effort "to represent the wishes of all shareholders," the company's nominations committee met with Thian. They raised the possibility of offering him a non-executive director position, according to the release, but Thian said he had no interest in non-executive posts.

In the latest release, the board said Thian already has substantial board commitments and that adding an executive role at SkyePharma would exceed his available capacity, "particularly given the need for him to address the problems at Whatman in light of its recent profits warning."

Additionally, the company said that it needs a senior management team that can work together and that, in contrast, Thian's reputation has been built on restructuring. In his current post, he had appointed three chief executives in three years and conceded to his board last month that management problems were the cause of missed market expectations, according to the release.

London-based SkyePharma uses drug-delivery technology to facilitate drug formulation.

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