MannKind sells Tyvaso DPI rights stake for $150 million

WESTLAKE VILLAGE, Calif. – MannKind Corporation (Nasdaq: MNKD) announces the sale of 1% of net sales of Tyvaso DPI, a drug for the treatment of pulmonary hypertension and related conditions, to Sagard Healthcare for $150 million. Royalty Rights. The transaction, which takes place on December 27, 2023, may also result in additional milestone payments of up to $50 million.

Tyvaso DPI is licensed and marketed by United Therapeutics Corporation and was approved by the U.S. FDA in June 2022. Under the licensing agreement, MannKind is entitled to a 10% royalty on net sales of the drug, which will now be reduced to 9% following the sale of a 1% stake to Sagard Healthcare.

Under the terms of the license agreement, Sagard Healthcare will receive payments from Tyvaso DPI net revenues from October 1, 2023, through December 31, 2042. MannKind received a purchase payment of $150 million, which included a 1% royalty. The milestone payment is contingent on Tyvaso DPI achieving 12-month net sales of $1.9 billion by the end of 2026 or $2.3 billion by September 30, 2027. If milestones are not met, MannKind will not receive milestone payments and Sagard Healthcare will not be entitled to any royalties from net sales exceeding $3.5 billion in any year. Which solar calendar?

The deal was brokered by Morgan Stanley & Co. LLC, MannKind is represented by Cooley LLP, and Sagard is represented by Sidley Austin LLP.

The information in this article is based on a press release from MannKind Corporation.

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