- 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 ...