Sanofi to pay up to $900m to Mannkind for share in insulin Afrezza

Sanofi and Mannkind have signed an exclusive licensing agreement to develop and market the latter’s inhaled insulin diabetes therapy Afrezza.

Under the terms of the agreement, France-based Sanofi will pay Mannkind $150m upfront and make subsequent milestone payments of up to $775m.

The French company will advance the payment of its share of expenses up to $175m to Mannkind.

Sanofi will have a share of 65% in profits and loses while Mannkind will receive 35%.

Mannkind chairman and CEO Alfred Mann said: "Our profit-sharing agreement aligns the interests of MannKind and Sanofi to optimize development, commercialization and manufacturing costs."

Afrezza is the first inhaled insulin to be approved by the US Food and Drug Administration for adults with type 1 and type 2 diabetes. Mannkind obtained the approval earlier this year.

Sanofi senior vice-president diabetes division Pierre Chancel said: "Afrezza is an innovative drug-device combination product consisting of a dry formulation of human insulin delivered through a small, discreet inhaler.

"It is uniquely positioned to provide patients with another insulin therapy option to manage their diabetes but does not require multiple daily injections."

The companies plan to launch Afrezza in the US in the first quarter of 2015.

Sanofi will be responsible for global commercial, regulatory and development activities while Mannkind will manufacture the drug at its facility in Danbury, Connecticut.

The manufacturing capacity would be expanded depending on the demand for the product, the companies said.