Categories Earnings, Other Industries

United Therapeutics, MannKind to co-develop pulmonary hypertension drug

The healthcare sector this week witnessed yet another instance of two companies coming together to find therapeutic solution for a challenging medical condition. Biotechnology firm United Therapeutics (UTHR) has joined hands with California-based drug developer MannKind Corp. (MNKD) to co-develop a formulation of treprostinil, which is being evaluated for the treatment of pulmonary arterial hypertension.

Under the exclusive licensing and collaboration agreement, the companies will jointly commercialize the dry powder formulation globally. United Therapeutics will make an upfront payment of $45 million to MannKind, which will be followed up with payments of about $50 million on achieving certain milestones. The deal also includes the payment of royalty to MannKind on product sales.

The responsibilities of United Therapeutics will be to develop the drug, ensure regulatory compliance and commercial activities. The clinical supplies and initial commercial supplies of the product will be manufactured by MannKind.

Under the exclusive agreement, the companies will jointly commercialize the dry powder formulation globally

United Therapeutics has an option to include other ingredients used in the treatment of pulmonary hypertension on payment of $40 million to MannKind for each product. In addition, the companies signed a pact for carrying out research on other products that do not come under the licensing agreement.

Earlier this year, MannKind completed the phase-I of its clinical study on Treprostinil Technosphere, achieving the primary endpoint. Based on the positive outcome of the preliminary trial, the company launched phased-II of the study to evaluate its safety in pulmonary hypertension patients.

RELATED: Teva Pharma secures FDA approval

Also Read:  Tesla (TSLA) stock gains after Q3 results beat Street view

“We are pleased with this new opportunity to demonstrate the value of our drug and device combination platform for delivering therapeutic products. We believe this collaboration will have the potential to significantly improve the lives of people living with pulmonary arterial hypertension,” said MannKind CEO Michael Castagna.

Pulmonary arterial hypertension is a condition characterized by high blood pressure in the arteries running between the lungs and heart of the patient. If left untreated, the disease could lead to heart failure.

Following the announcement, MannKind stock jumped about 40% in premarket trading, after closing the last trading session slightly lower. Shares of United Therapeutics, which dropped about 19% over the past eight months, closed the last trading session down 1%.

RELATED: Merck, others to lower drug prices

Most Popular

Starbucks (SBUX) stock falls after Q4 earnings

Starbucks (NASDAQ: SBUX) reported fourth-quarter 2020 financial results after the closing bell on Thursday. The coffee chain reported an 8% decline in Q4 revenues to $6.20 billion, which was better

Facebook reports stellar results in Q3

Facebook (NASDAQ: FB) reported third-quarter 2020 financial results after the closing bell on Thursday. The social media giant reported a 22% spike in Q3 revenue to $21.47 billion, which was

AMZN Earnings: All you need to know about Amazon Q3 2020 earnings results

Amazon.com, Inc. (NASDAQ: AMZN) reported third quarter 2020 earnings results today. Net sales increased 37% year-over-year to $96.1 billion. Net income increased to $6.3 billion, or $12.37 per share, from

One thought on “United Therapeutics, MannKind to co-develop pulmonary hypertension drug

Comments are closed.

Top