An agreement between MannKind Corporation (NASDAQ:MNKD) and Sanofi SA (ADR) (NYSE:SNY) is now official given that the two have made it public. However, there are various terms of the agreement that each of them is obligated to fulfill. Termination of the promissory note and safety accord between MannKind and Aventisub LLC, which is Sanofi affiliate, will be the first obligation. Nonetheless, Aventisub will have to agree to the foregoing of an outstanding loan balance amounting to $71.56 million. As his happens, MannKind will, on the other hand, get relieve from its obligation to pay $0.5 million; uncharged costs related to the collaboration.
As part of its pre-existing commitment, Sanofi will also be obligated to purchase insulin from MannKind worth of $10.2 million. The purchase, which must be done early December, results from the termination of the collaboration and MannKind’s exercise of a “put” option. The balance of the insulin “put” option, which is worth $30.6 million, will be accelerated with Sanofi’s completion of a cash payment of $30.6 million to MannKind. At no point will MannKind be required to deliver any insulin to Sanofi during the payment period by Sanofi.
About MannKind
It is well-known for the discovery, the development, and commercialization of therapeutic products. Patients with diseases such as diabetes have nothing to worry about because MannKind is ever on toes with a new product. The beauty of it is that the company has an open website where interested persons can subscribe to e-mail alerts that will give them anything new from and about MannKind.
Apparently, its collaboration with Sanofi is not in vain given that it recognized $161.8 million in net revenue for the three and nine months that ended September 30, 2016.
Sanofi is disposing of some of its Merial’s vaccines and pharmaceuticals
As everything else unfolds, the French peer Sanofi’s Merial animal health business is being acquired by Boehringer Ingelheim. The German drugmaker, which has obtained EU antitrust approval is an allay competitor. However, it will be swapping this purchase with its consumer health division, which Sanofi would buy. The asset swap will cost $20 billion.
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