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Sagard Healthcare purchased a 1% royalty in Tyvaso DPI® net sales
Purchase price of $150 million; additional potential milestone payment of up to $50 million
WESTLAKE VILLAGE, Calif., Jan. 02, 2024 (GLOBE NEWSWIRE) -- MannKind Corporation (Nasdaq: MNKD) announced that on December 27, 2023 it sold a 1% royalty in net sales of Tyvaso DPI® (treprostinil) inhalation powder in exchange for up to $200 million, including the purchase price of $150 million and an additional potential milestone payment of up to $50 million.
United Therapeutics Corporation licensed Tyvaso DPI from MannKind in 2018 and began marketing it in June 2022 for the treatment of pulmonary arterial hypertension and pulmonary hypertension associated with interstitial lung disease following U.S. FDA approval. Pursuant to a license agreement with United Therapeutics, MannKind is entitled to a 10% royalty on net sales of Tyvaso DPI, subject to certain reductions.
Under the terms of the royalty purchase agreement, Sagard Healthcare will receive royalty payments equal to 1% of the net sales of Tyvaso DPI that occur between October 1, 2023 and December 31, 2042, with MannKind retaining a 9% royalty. MannKind received a $150 million purchase payment for the 1% royalty and is entitled to receive a milestone payment as follows:
$50 million in the event that the trailing 12-month net sales of Tyvaso DPI equals or exceeds $1.9 billion by December 31, 2026; or
if the preceding milestone is not achieved, $45 million in the event that the trailing 12-month net sales of Tyvaso DPI equals or exceeds $2.3 billion by September 30, 2027.
If neither sales milestone is achieved, then (i) MannKind will not receive a milestone payment and (ii) Sagard Healthcare will not be entitled to any portion of the royalties payable to MannKind in respect of net sales of Tyvaso DPI that exceed $3.5 billion in any calendar year.
Additional information regarding the royalty purchase agreement is provided in a Current Report on Form 8-K filed by MannKind with the U.S. Securities and Exchange Commission.
Morgan Stanley & Co. LLC acted as sole structuring agent on the transaction. MannKind was represented in the transaction by Cooley LLP. Sagard was represented in the transaction by Sidley Austin LLP.
MannKind will host a conference call and presentation webcast to discuss this transaction January 3, 2024 at 9:00 a.m. Eastern Time. Those interested in listening to the conference call live via the Internet may do so by visiting the Company’s website at mannkindcorp.com under Events & Presentations. A replay will be available on MannKind's website for 14 days.
MannKind Corporation (Nasdaq: MNKD) focuses on the development and commercialization of innovative therapeutic products and devices to address serious unmet medical needs for those living with endocrine and orphan lung diseases.
We are committed to using our formulation capabilities and device engineering prowess to lessen the burden of diseases such as diabetes, pulmonary arterial hypertension (PAH) and nontuberculous mycobacterial (NTM) lung disease. Our signature technologies – dry-powder formulations and inhalation devices – offer rapid and convenient delivery of medicines to the deep lung where they can exert an effect locally or enter the systemic circulation.
With a passionate team of Mannitarians collaborating nationwide, we are on a mission to give people control of their health and the freedom to live life.
Sagard is a multi-strategy alternative asset management firm with over US$15B under management, 125 portfolio companies, and 350 professionals. We invest in venture capital, private equity, private credit, real estate, and royalties. We deliver flexible capital, an entrepreneurial culture, and a global network of investors, commercial partners, advisors, and value-creation experts. Our firm has offices in Canada, the United States, Europe and the Middle East.
TYVASO DPI is a registered trademark of United Therapeutics Corporation.
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