MannKind sells 1% Tyvaso DPI royalty to Sagard for $150M upfront, retains 9%

MANNKIND CORP

Sagard pays MannKind $150M upfront for a 1% royalty on global net sales of Tyvaso DPI through Dec 31, 2042.
MannKind retains a 9% royalty on Tyvaso DPI; total 10% royalty pool split 1% Sagard / 9% MannKind.
Milestone: $50M if trailing 12-month net sales hit $1.9B by Dec 31, 2026; else $45M if $2.3B by Sep 30, 2027.
If milestones not met, no milestone payment and Sagard forgoes royalty on net sales above $3.5B in any calendar year.
Transaction closed Dec 27, 2023; proceeds net of legal expenses; customary representations and indemnities.

Key facts

Extracted from this filing and checked against the source text.

Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

MANNKIND CORP entered into Purchase Agreement with Sagard Healthcare Funding Partners Borrower 2 SPE, LP valued at $150 million (effective 2023-12-27).

Action: entry
Agreement: asset purchase
Counterparty: Sagard Healthcare Funding Partners Borrower 2 SPE, LP
Value: $150 million
Effective: 2023-12-27

Exact text from the filing

On December 27, 2023, MannKind Corporation (the “Company”) entered into a Purchase and Sale Agreement (the “Purchase Agreement”) with Sagard Healthcare Funding Partners Borrower 2 SPE, LP (“Sagard”) for the sale to Sagard of a 1% royalty on global net sales of Tyvaso DPI ® (treprostinil) inhalation powder (“Tyvaso DPI”) occurring on and after October 1, 2023 through December 31, 2042 under the Company’s License and Collaboration Agreement dated as of September 3, 2018, as amended (the “License Agreement”), with United Therapeutics Corporation.

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Source: SEC EDGAR

accession 0001193125-24-000161

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