MannKind and Sagard Healthcare Enter Into Royalty Purchase Agreement for Up to $200 Million
January 02 2024 - 6:05AM
MannKind Corporation (Nasdaq: MNKD) announced that
on December 27, 2023 it sold a 1% royalty in net sales of Tyvaso
DPI® (treprostinil) inhalation powder in exchange for up to $200
million, including the purchase price of $150 million and an
additional potential milestone payment of up to $50 million.
United Therapeutics Corporation licensed Tyvaso DPI from
MannKind in 2018 and began marketing it in June 2022 for the
treatment of pulmonary arterial hypertension and pulmonary
hypertension associated with interstitial lung disease following
U.S. FDA approval. Pursuant to a license agreement with United
Therapeutics, MannKind is entitled to a 10% royalty on net sales of
Tyvaso DPI, subject to certain reductions.
Under the terms of the royalty purchase agreement, Sagard
Healthcare will receive royalty payments equal to 1% of the net
sales of Tyvaso DPI that occur between October 1, 2023 and December
31, 2042, with MannKind retaining a 9% royalty. MannKind received a
$150 million purchase payment for the 1% royalty and is entitled to
receive a milestone payment as follows:
- $50 million in the event that the trailing 12-month net sales
of Tyvaso DPI equals or exceeds $1.9 billion by December 31, 2026;
or
- if the preceding milestone is not achieved, $45 million in the
event that the trailing 12-month net sales of Tyvaso DPI equals or
exceeds $2.3 billion by September 30, 2027.
If neither sales milestone is achieved, then (i) MannKind will
not receive a milestone payment and (ii) Sagard Healthcare will not
be entitled to any portion of the royalties payable to MannKind in
respect of net sales of Tyvaso DPI that exceed $3.5 billion in any
calendar year.
Additional information regarding the royalty purchase agreement
is provided in a Current Report on Form 8-K filed by MannKind with
the U.S. Securities and Exchange Commission.
Morgan Stanley & Co. LLC acted as sole structuring agent on
the transaction. MannKind was represented in the transaction by
Cooley LLP. Sagard was represented in the transaction by Sidley
Austin LLP.
Conference CallMannKind will host a conference
call and presentation webcast to discuss this transaction January
3, 2024 at 9:00 a.m. Eastern Time. Those interested in listening to
the conference call live via the Internet may do so by visiting the
Company’s website at mannkindcorp.com under Events &
Presentations. A replay will be available on MannKind's website for
14 days.
About MannKindMannKind Corporation (Nasdaq:
MNKD) focuses on the development and commercialization of
innovative therapeutic products and devices to address serious
unmet medical needs for those living with endocrine and orphan lung
diseases.
We are committed to using our formulation capabilities and
device engineering prowess to lessen the burden of diseases such as
diabetes, pulmonary arterial hypertension (PAH) and nontuberculous
mycobacterial (NTM) lung disease. Our signature technologies –
dry-powder formulations and inhalation devices – offer rapid and
convenient delivery of medicines to the deep lung where they can
exert an effect locally or enter the systemic circulation.
With a passionate team of Mannitarians collaborating nationwide,
we are on a mission to give people control of their health and the
freedom to live life.
Please visit mannkindcorp.com to learn more, and follow us on
LinkedIn, Facebook, Twitter or Instagram.
About SagardSagard is a multi-strategy
alternative asset management firm with over US$15B under
management, 125 portfolio companies, and 350 professionals. We
invest in venture capital, private equity, private credit, real
estate, and royalties. We deliver flexible capital, an
entrepreneurial culture, and a global network of investors,
commercial partners, advisors, and value-creation experts. Our firm
has offices in Canada, the United States, Europe and the Middle
East.
For more information, visit www.sagard.com or follow us on
LinkedIn @Sagard
TYVASO DPI is a registered trademark of United Therapeutics
Corporation.
MANNKIND CONTACTS:
Christie Iacangelo, Corporate Communications
(818) 292-3500
Email:media@mannkindcorp.com
Rose Alinaya, Investor Relations
(818) 661-5000
Email:ir@mannkindcorp.com
SAGARD CONTACTS:
Media: bristol@bevelpr.com
Investor Relations: ir@sagardholdings.com
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