MannKind shares jump on news of deal with Receptor

Troubled US drugmaker MannKind Corp (Nasdaq: MNKD) saw its share rise 12.3% to $0.89, after it announced that it has entered into a collaboration and license agreement with a newly-formed entity, Receptor Life Sciences.

Under the terms of the deal, multiple inhaled therapeutic products will be developed to explore their potential to treat conditions such as chronic pain, neurologic diseases and inflammatory disorders.

MannKind will perform initial formulation studies and will work with Receptor to develop inhaled formulations of certain undisclosed compounds. MannKind will also transfer manufacturing technology to the licensee, who will be responsible for manufacturing and commercialization activities. The parties will collaborate on the clinical development of investigational products, with Receptor being responsible for all development costs.  MannKind will be eligible to receive development and commercialization milestones of up to $102.25 million as well as mid-single to low double-digit royalties on net sales of product.