Troubled pharmaceutical company Bioglan Pharma said today it had reached a deal with Skyepharma, US firm Quintiles and its banks that would give it near term funding and resolve the marketing of a contested skin product.
But the debt-laden British firm added it was still in talks with its banks and prospective buyers over a long-term solution to its financial problems.
Bioglan's debts soared during a failed attempt to buy the skincare products of US drugs giant Bristol-Myers Squibb as it bolstered its business in an attempt to market drugs that, in the end, it never managed to acquire.
Bioglan said it had agreed to share the marketing of Skyepharma's Solaraze skin treatment with Quintiles Transnational in exchange for an immediate payment of £15 million sterling from the US company.
It said it would use this money to pay $12.5 million to Skyepharma, instead of the originally agreed $10 million.
For its part, Skyepharma said it would withdraw its attempts to end its marketing agreement with Bioglan over Solaraze.
As a result of the deal, Bioglan said its banks had agreed to extend a loan repayment freeze on its £105 million of debts until January 31st.
But Bioglan added it remained in talks with its banks - led by the Royal Bank of Scotland - and prospective buyers about a longer-term solution to its financial problems.
Bioglan has said in the past it would sell assets, and consider offers for the whole of its business, in an attempt to pay off its creditors. The deal over Solaraze is likely to make its key dermatological business more attractive to prospective buyers.