Sanofi will pay MannKind $150 million upfront and milestone payments of up to $775 million for an exclusive development and commercialization license for Afrezza insulin inhalation powder, the companies have announced. The companies will split profits and losses, with Sanofi’s share being 65% and MannKind getting 35%.
Afrezza, which was approved by the FDA in June 2014, is expected to launch in the US early in 2015.
In addition to the upfront payment, Sanofi will advance up to $175 million of its share of expenses to MannKind. Sanofi will handle development, regulatory, and commercial activities, while MannKind will manufacture the product. Both companies will work to expand MannKind’s manufacturing capacity if an expansion is necessitated by demand.
MannKind’s Chairman and CEO Alfred Mann said, “We are so very pleased and honored that Sanofi has joined with MannKind to bring Afrezza to patients with diabetes worldwide. Sanofi is the ideal partner given their complementary product portfolio, their vast insulin market presence and a leading global commercial infrastructure. Our profit-sharing agreement aligns the interests of MannKind and Sanofi to optimize development, commercialization and manufacturing costs.”
Sanofi Senior VP Diabetes Division Pierre Chancel commented, “Afrezza is an innovative drug-device combination product consisting of a dry formulation of human insulin delivered through a small, discreet inhaler. Afrezza is a further addition to our growing portfolio of integrated diabetes solutions. It is uniquely positioned to provide patients with another insulin therapy option to manage their diabetes but does not require multiple daily injections.”
Read the Sanofi and MannKind press release.
