Sanofi and MannKind Enter Global Licensing Agreement for Afrezza Insulin
Sanofi and MannKind Corporation have entered into a worldwide exclusive licensing agreement for development and commercialization of Afrezza (insulin human) Inhalation Powder, a new rapid-acting inhaled insulin therapy for adults with type 1 and type 2 diabetes. The companies plan to launch Afrezza in the United States in the first quarter of 2015.
Under the collaboration and license agreement, Sanofi will be responsible for global commercial, regulatory and development activities. Under a separate supply agreement, MannKind will manufacture Afrezza at its manufacturing facility in Danbury, Connecticut. In addition, the companies are planning to collaborate to expand manufacturing capacity to meet global demand as necessary.
Under the terms of the agreement, MannKind Corporation will receive an upfront payment of $150 million and potential milestone payments of up to $775 million. The milestone payments are dependent upon specific regulatory and development targets, as well as sales thresholds. Both companies will share profits and losses on a global basis, with Sanofi retaining 65% and MannKind receiving 35%.
"Afrezza is a further addition to our growing portfolio of integrated diabetes solutions," said Pierre Chancel, Sanofi Senior Vice President Diabetes Division. "It is uniquely positioned to provide patients with another insulin therapy option to manage their diabetes but does not require multiple daily injections."
Sanofi's diabetes solutions portfolio includes medications as well as drug delivery systems and blood glucose monitoring devices.
"Sanofi is the ideal partner given their complementary product portfolio, their vast insulin market presence and a leading global commercial infrastructure. Our profit-sharing agreement aligns the interests of MannKind and Sanofi to optimize development, commercialization and manufacturing costs," stated Alfred Mann, MannKind's Chairman and Chief Executive Officer.
