According to MannKind Corporation, it has reached an agreement with Sanofi regarding the return of rights to Afrezza inhaled insulin, in which “All issues arising out of the license and collaboration agreement, the supply agreement, the promissory note, the security agreement and the transition agreement are resolved.”
In January 2016, Sanofi announced that it would return the rights to Afrezza after having launched the product in February 2015. The original licensing deal included a $150 million upfront payment to MannKind and up to $775 million in milestone payments.
Sanofi will forgive an outstanding loan balance of $71.56 million and will purchase $10.2 million worth of Afrezza in December 2016. In addition, Sanofi will pay MannKind $30.6 million to MannKind by January 9, 2017, and MannKind will not have to pay $0.5 million in costs related to the collaboration agreement that had not been charged previously.
Read the MannKind press release.
