MannKind Corp. has entered into a worldwide exclusive licensing and collaboration agreement with United Therapeutics Corp. for the development and commercialization of a product currently being evaluated in clinical trials for the treatment of pulmonary arterial hypertension.
The clinical supplies and initial commercial supplies of the product will be made at MannKind”™s manufacturing facility in Danbury. United Therapeutics will be responsible for global development, regulatory and commercial activities.
MannKind, headquartered in Westlake Village, California, will receive from Silver Springs, Maryland-based United Therapeutics an upfront payment of $45 million and potential milestone payments of up to $50 million, dependent upon the achievement of specific development targets. MannKind will also be entitled to receive low double-digit royalties on net sales of the product.
In addition, MannKind granted United Therapeutics an option to expand the license to include other active ingredients for the treatment of pulmonary hypertension. Each optioned product would be subject to the payment to MannKind of up to $40 million in additional option exercise and development milestone payments, as well as a low double-digit royalty on net sales of any such product.
The parties also entered into an agreement for the conduct of research by MannKind on behalf of United Therapeutics for products outside the scope of the licensing and collaboration agreement. MannKind will receive an immediate payment of $10 million in consideration for its performance under the research agreement.
