MannKind (MNKD), Sanofi (SNY) Enter Afrezza Resolution; Includes Termination of Aventisub Agreement

November 10, 2016 6:19 AM EST

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MannKind Corporation (Nasdaq: MNKD) announced that MannKind and Sanofi (NYSE: SNY) have entered into an agreement with the following terms:

  • The promissory note and security agreement between MannKind and Aventisub LLC, a Sanofi affiliate, are terminated, with Aventisub agreeing to forgive the full outstanding loan balance of $71.56 million.
  • MannKind is also relieved from its obligation to pay $0.5 million in previously uncharged costs related to the collaboration.
  • Sanofi will purchase $10.2 million worth of insulin from MannKind in early December as part of its preexisting commitment to purchase insulin following termination of the collaboration and MannKind’s exercise of a “put” option.
  • The balance of the insulin “put” option ($30.6 million) is accelerated with Sanofi completing the cash payment of $30.6 million to MannKind by January 9, 2017. This payment will be made without MannKind being required to deliver any insulin to Sanofi.
  • 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.

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