MannKind receives $150 million licensing upfront payment from Sanofi

4 October 2014

USA-based MannKind Corp (Nasdaq: MNKD) says it had received a $150 million upfront payment in connection with an exclusive worldwide collaboration and licensing agreement with French pharma major Sanofi (Euronext: SAN) for development and commercialization of Afrezza (insulin human) inhalation powder, a new rapid-acting inhaled insulin therapy for adults with type 1 and type 2 diabetes.

The milestone was triggered by the closing of a $925 million deal with Sanofi, which includes total payments of up to $775 million dependent upon specific regulatory and development targets, as well as sales thresholds (The Pharma Letter August 11).

Analysts at Zacks Equity Research said they are encouraged by MannKind’s decision to choose Sanofi as a partner for Afrezza. Given Sanofi’s significant experience in marketing diabetes products, Afrezza is in safe hands. They expect investor focus to remain on the performance of Afrezza following its US launch, which is expected in early 2015.

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