MannKind Strikes $45M Deal to Treat Pulmonary Disease

DANBURY, CT -- MannKind Corporation announced Tuesday that it has entered into a worldwide exclusive licensing and collaboration agreement with United Therapeutics Corporation for the development and commercialization of a product currently being evaluated in clinical trials for the treatment of pulmonary arterial hypertension.

Under the agreement, MannKind will manufacture clinical supplies and initial commercial supplies of the product at its manufacturing facility in Danbury. United Therapeutics will be responsible for global development, regulatory and commercial activities.

Under the terms of the agreement, MannKind Corporation will receive an upfront payment of $45 million and potential milestone payments of up to $50 million, dependent upon the achievement of specific development targets.

MannKind will also be entitled to receive low double-digit royalties on net sales of the product. In addition, MannKind granted United Therapeutics an option to expand the license to include other active ingredients for the treatment of pulmonary hypertension. Each optioned product would be subject to the payment to MannKind of up to $40 million in additional option exercise and development milestone payments as well as a low double-digit royalty on net sales of any such product.

The parties also entered into a research agreement for the conduct of research by MannKind on behalf of United Therapeutics for products outside the scope of the licensing and collaboration agreement. MannKind will receive an immediate payment of $10 million in consideration for its performance under the research agreement.

“We are excited to partner with United Therapeutics, a company that shares our passionate focus on changing patients’ lives,” stated Michael Castagna, Pharm.D., Chief Executive Officer of MannKind. “We are pleased with this new opportunity to demonstrate the value of our drug and device combination platform for delivering therapeutic products. We believe this collaboration will have the potential to significantly improve the lives of people living with pulmonary arterial hypertension.”

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MannKind Corporation, headquartered in Westlake Village, California, focuses on the development and commercialization of inhaled therapeutic products for patients with diseases such as diabetes and pulmonary arterial hypertension.

United Therapeutics is a biotechnology company focused on the development and commercialization of innovative products to address the unmet medical needs of patients with chronic and life-threatening conditions.