Tomahawk, WI 08/12/2014 (Basicsmedia) – According to recent reports, a French company has paid as much as $925 million to market a drug called Afrezza, that is produced by MannKind Corporation (NASDAQ:MNKD). Afrezza is used in inhaled insulin treatment for people who suffer from diabetes.
MannKind Corporation (NASDAQ:MNKD) is owned by Alfred Mann; a well-known physicist and entrepreneur. The marketing rights of Afrezza have been won by the French company Sanofi. According to reports, the company will pay $150 million upfront to MannKind. Rest $775 million will be paid at a later stage if Afrezza meets certain regulatory and sales milestones. When reporters asked a spokesperson of Sanofi about the expected time to start the sales of Afrezza, he said, “If everything goes as per plans, then we will start selling the drug early next year so that we can meet our deadlines.”
Other than hefty $925 million, Sanofi will also share 35% of profit or loss realized through the sales of Afrezza with MannKind Corporation (NASDAQ:MNKD). The stock price of MNKD rose by 5% and touched $8.53 on Monday evening; just after the news of Sanofi and MNKD’s tie-up spread in the market. MNKD spent as much $2 billion in last one decade to develop Afrezza; therefore, this deal between MNKD and Sanofi proved to be one of the largest milestones for the company.
According to reports, Afrezza got approval from The Food and Drug Administration of the U.S. in the month of June. Soon after the approval, MannKind Corporation (NASDAQ:MNKD) started searching for a well-established pharmaceutical company that could market Afrezza in all over the world. It ended up with Sanofi after evaluating a lot of companies across the globe. Sanofi is a well-known French firm in the field of human vaccines, diabetes drugs and other healthcare products. MNKD will manufacture the drug and rely on Sanofi’s network of marketing professionals to sell Afrezza.