Business
MannKind and Sagard Healthcare Enter Into Royalty Purchase Agreement for Up to $200 Million
Sagard Healthcare purchased a 1% royalty in Tyvaso DPI® net salesPurchase price of $150 million; additional potential milestone payment of up to $50 million
About this update from Mannkind Corporation
[{"type":"text","content":"Sagard Healthcare purchased a 1% royalty in Tyvaso DPI® net salesPurchase price of $150 million; additional potential milestone payment of up to $50 million WESTLAKE VILLAGE, Calif., Jan. 02, 2024 (GLOBE NEWSWIRE) -- 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; orif 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 Ja...