MannKind, Sanofi deal

MannKind granted Sanofi exclusive, worldwide rights to develop and commercialize Afrezza to treat adults with Type I and II diabetes. MannKind will receive $150 million in cash up front and is eligible for up to $75 million in near-term manufacturing and development milestones, $30 million upon approval in the EU, $20 million upon approval in Japan and up to $650 million in sales milestones. The partners said the first sales milestone will be triggered by $250 million in sales. Sanofi and MannKind will share profits and losses 65/35 on a worldwide basis. Sanofi will be responsible for commercialization, regulatory and development activities, and MannKind will manufacture Afrezza under a separate supply deal with Sanofi. The partners plan to launch Afrezza in the U.S. in 1Q15.

Greenhill & Co. was financial advisor to MannKind. In connection with the licensing deal, MannKind also secured a $175 million loan facility from Sanofi to fund its share of losses from the collaboration’s expenses. ...