MannKind in royalty agreement with Sagard Healthcare for Tyvaso DPI

MannKind Corp. (MNKD) said Tuesday it has entered a royalty agreement with Sagard Healthcare under which the latter will receive 1% of royalty sales of Tyvaso DPI inhalation powder for up to $200 million. United Therapeutics Corp. licensed Tyvaso DPI from MannKind in 2018 and started to market it in June 2022 as a treatment for pulmonary arterial hypertension and pulmonary hypertension associated with interstitial lung disease following U.S. FDA approval. Under the terms of that deal, MannKind is entitled to a 10% royalty on sales of the treatment. Under its new agreement, Sagard will be entitled to royalty payments equal to 1% of net sales of Tyvaso DPI that are made between Oct. 1, 2023 and Dec. 31, 2042. MannKind will receive a $150 million upfront payment and $50 million if sales equal or exceed $1.9 billion by end-December 2026. If that milestone is not achieved, MannKind will get $45 million if the sales equal or exceed $2.3 billion by Sept. 30 of 2027. If neither milestone is achieved, MannKind will not receive the milestone payment and Sagard will not get any of the royalties payable in respect of sales that exceed $3.5 billion in any calendar year. MannKind's stock fell 1% premarket and is down 31% over the last 12 months, while the S&P 500 has gained 24%.

-Ciara Linnane

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

01-02-24 0619ET

Copyright (c) 2024 Dow Jones & Company, Inc.