MannKind Closes The Deal With The Global Diabetes Powerhouse Sanofi

360 Catalyst Keys

  • MannKind Corporation officially closed the commercial partnership deal with Sanofi on September 24, 2014.
  • The company will receive $150 million upfront payment from the French Diabetes Powerhouse within 10 days.
  • Despite significant recession of share price, MannKind's fundamentals are stronger than ever.
  • The Technosphere development is also on track, as MannKind is open to collaboration from potential partners.
  • Investors should sit tight at least until the value of Afrezza will be unlocked either in the middle to late 2015, when the ultimate rapid acting insulin will hit the market en-mass.

The Story. Some investors have been feeling anxious regarding whether MannKind Corporation (NASDAQ: MNKD) would finalize the deal with the French Pharmaceutical Powerhouse Sanofi (NYSE: SNY). Moreover, investors previously questioned whether the deal was in the best interest of shareholders. The good news is that today, MannKind announced the company officially finalized their commercialization deal with Sanofi.

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Source: MannKind

More Insight. “The closing follows completion of the US Federal Trade Commission’s review of the transaction under the Hart-Scott-Rodino Act and the completion of documentation related to the $175 million loan facility being provided to MannKind by an affiliate of Sanofi in connection with the collaboration and license agreement” per MannKind’s press release.

“Under the terms of the collaboration and license agreement, MannKind will receive a $150 million upfront payment within ten days of the closing.”  

Pertaining to the favorability of the deal, we stated that there isn’t any other partner out there as good as Sanofi for MannKind. The French Powerhouse Pharmaceuticals Sanofi has a vast global force of more than 35,000 sales and marketing reps and an optimized infrastructure to rapidly and effectively launch Afrezza, using cost reduction and synergism.

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Disclosure: We are ultra long on MannKind.

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