MannKind Raises $ 102 Million Manufacturing Plant Sale Leaseback to Fund Operations
MannKind, the maker of inhaled insulin therapy for diabetes, has signed a sale-leaseback agreement for its manufacturing plant for $ 102.25 million, which will help consolidate its finances while continuing to work on other inhaled products for orphan endocrine and pulmonary diseases.
Under the terms of the agreement, signed with a subsidiary of Creative Manufacturing Properties, MannKind accepted a 20-year lease for the 263,900 square foot plant, located in Danbury, Connecticut. The site produces MannKind’s Afrezza, the only inhaled insulin approved by the FDA on the market. The California-based company’s R&D facility was not part of the deal.
MannKind, who has struggled in recent years to gain widespread acceptance for Afrezza, plans to manufacture Tyvaso DPI in conjunction with United Therapeutics at the site. Tyvaso DPI, which the FDA is currently reviewing, is an inhalant for pulmonary arterial hypertension and pulmonary hypertension associated with lung disease.
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Afrezza sales have lagged in recent years due to confusion over efficacy and dosage, MannKind CEO Michael Castagna told the Pacific Coast Business Times in February, adding that these issues had been resolved. thanks to “a significant number of publications and presentations”. Afrezza posted sales of $ 17.2 million in 2020, up from $ 5.2 million in 2019.
Nonetheless, earlier this year MannKind reported a net loss of $ 57.2 million for 2020, which it attributed primarily to costs associated with its $ 12.8 million acquisition of QrumPharma. The company recorded a net loss of $ 51.9 million in 2019.
“We are delighted to complete this sale-leaseback transaction and unlock value related to our manufacturing facility that translates directly into non-dilutive capital to support our business growth and development strategy,” Castagna said in a statement. “The company is well capitalized to invest further in our growing product portfolio as well as in the targeted scale-up of Afrezza’s business and clinical trials. “