BioWorld International Correspondent

LONDON - SkyePharma plc said it has ordered a strategic review of the business after receiving an "unsolicited approach" from a third party.

In the light of that, the London-based drug delivery company has decided to "review all of its strategic options," including offers for the company as a whole.

Lehman Brothers have been appointed to give advice.

SkyePharma's shares were weakened by news of a heavily discounted rights issue to raise £35 million (US$61.2 million), announced at the end of September.

The money is to pay for Phase III trials of Flutiform, a combination asthma product. The market reacted badly, as SkyePharma had said previously that it would find a partner to pay for the trial, and had gone as far as announcing heads of agreement on a £160 million deal in April.

The 1-for-5 rights issue of 125.6 million shares was priced at 30 pence apiece.

SkyePharma's shares closed at 46 pence on Nov. 11, valuing the company at £348 million. The price rose 3.5 pence to 49.5 pence when news of a suitor was announced Monday.