According to MannKind Corporation, Sagard Healthcare is paying $150 million and a potential milestone payment of as much as $50 million for a 1% royalty on net sales of Tyvaso treprostinil DPI between October 1, 2023 and December 31, 2042. Tyvaso DPI is marketed by United Therapeutics, which licensed Treprostinil Technosphere from MannKind Corporation in September 2018. Under the license agreement, MannKind receives a 10% royalty on net sales of the dry powder inhaler and will retain 9% following the sale to Sagard.
The FDA approved the company’s NDA for Tyvaso DPI for the treatment of pulmonary arterial hypertension (PAH) and pulmonary hypertension associated with interstitial lung disease (PH-ILD) in May 2022 and United Therapeutics launched the inhaler the following month.
According to MannKind, a $50 million milestone payment would be due if trailing 12-month net sales of Tyvaso DPI are equal to or greater than $1.9 billion by the end of 2026. If sales fail to reach that mark but equal or exceed $2.3 billion by September 30, 2027, Sagard would be required to make a payment of $45 million. If neither of those goals are met, then Sagard would not get royalties on sales over $3.5 billion in any calendar year, and MannKind would not get a milestone payment.
Read the MannKind Corporation press release.
