MannKind Corporation Secures Up To $200 Million In Royalty Agreement With Sagard Healthcare

WESTLAKE VILLAGE, Calif. — MannKind Corporation MNKD, a pioneering biopharmaceutical firm specializing in inhaled therapeutics, announced a significant financial development. On December 27, 2023, the company entered into a Royalty Purchase Agreement with Sagard Healthcare. Under the terms of the agreement, MannKind has sold a 1% royalty on net sales of its innovative product, Tyvaso DPI® (treprostinil) inhalation powder, which is a treatment option for conditions such as pulmonary arterial hypertension (PAH). This deal potentially injects up to $200 million in capital, inclusive of the initial purchase price of $150 million.

Royalty Agreement Details

With this strategic maneuver, Sagard Healthcare acquires a slice of Tyvaso DPI®'s future revenues, reinforcing MannKind Corporation's financial position. The agreement allows for an additional contingent consideration of up to $50 million, subject to the achievement of certain sales milestones. This influx of funds serves as a testament to the confidence in Tyvaso DPI®, co-developed with United Therapeutics UTHR, and its market potential.

Impact on MannKind and United Therapeutics

MannKind's expertise lies in respiratory therapeutics, targeting endocrine and orphan lung diseases. Headquartered in Westlake Village, California, the company is focused on leveraging its proprietary Technosphere® technology to enhance the delivery of medicines. Similarly, UTHR, headquartered in Silver Spring, Maryland, is committed to novel biotechnological advances to tackle serious medical conditions. Together, they aim to improve the treatment landscape for diseases with high unmet medical needs. This newly announced agreement undoubtedly strengthens their financial stability and supports continued investment in therapeutic innovations.

The Strategic Significance for MannKind

This transaction signifies more than just an immediate capital boost for MannKind; it provides breathing room for further research and development pursuits. By monetizing a fraction of Tyvaso DPI®'s revenue stream, MannKind epitomizes a strategic approach to financing that supports sustainable growth. The company can now allocate resources to advance its pipeline and maximize shareholder value without compromising its asset's long-term potential.

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