Skyepharma, the UK-listed drug discovery company, announced today that it is to sell its injectables business to Blue Acquisition Corp of the US for up to $82m (£42.2m).

The deal consists of an initial cash payment of $20m, with a further payment of up to $82m subject to the successful development and substantial future sales of DepoBupivacaine, a long-acting local anaesthetic. 

Chief executive Frank Cordella said that the sale will relieve Skyepharma of a significant cash burn due to its operating losses and the potential costs of future development. The division's losses for the six months to June 2006 stood at £11.2m, on revenues of £3.9m.

Blue Acquisition Corp is an investment consortium led by Sanderling Ventures. Other investors include MPM Capital and OrbiMed.