Boston, MA 08/11/2014 (wallstreetpr) – French drug company Sanofi SA (ADR) (NYSE:SNY) and MannKind Corporation (NASDAQ:MNKD) have entered a global collaboration that involves developing and marketing of the inhaled insulin therapy, Afrezza, targeting adults with types 1 and 2 of diabetes. Afrezza is billed as rapid-acting inhaled insulin, a new solution for diabetes patients that the companies believe their joint efforts can help penetrate more markets and improve the lives of many more patients.
Top on the agenda, the companies have promised to launch Afrezza in the U.S. in 1Q2015.
On to other details of the agreement, Sanofi SA (ADR) (NYSE:SNY) and MannKind said in a statement that their agreement involves Sanofi taking over the responsibilities for global commerce, development activities and regulatory matters. However, MannKind Corporation (NASDAQ:MNKD) will on its part manufacture Afrezza. The statement went further to state that MannKind will do the manufacturing at its facility in Danbury, Connecticut. The agreement also involves plans by the companies to enhance the manufacturing capacity of Afrezza so as to meet the global demand for the therapy.
The agreement states than Sanofi SA (ADR) (NYSE:SNY) will make payment of $150 million to MannKind in upfront consideration with up to $775 million in milestone payments. However, they said the milestone payments will depend upon meeting of certain regulatory and development targets. Furthermore, the company said they would share profits and losses in the collaboration such that Sanofi will retain 65 percent while MannKind will retain the rest – 35 percent.
Praising the deal
According to Pierre Chancel, a senior vice president at Sanofi SA (ADR) (NYSE:SNY), Affrezza becomes another important addition to their expanding portfolio of integrated solutions for diabetes. He further states that the therapy is uniquely placed to offer patients with another treatment option that doesn’t require injections.
On their part, MannKind’s CEO Alfred Mann praised their collaboration with Sanofi SA (ADR) (NYSE:SNY) and for the opportunity to bring Afrezza to global diabetes patients. He also said Sanofi is an ideal partner by the virtue that their product portfolios complement.