Sanofi to sign $925 million deal with MannKind Corp for inhaled insulin
Published By : 12 Aug 2014 | Published By : QYRESEARCH
Looking to find an alternative option to daily injections for patients suffering from diabetes, French drugmaker Sanofi is counting on inhaled insulin and has decided to sign an agreement with California-based biopharmaceutical company MannKind Corporation. The $925 million deal is Sanofi’s latest move to explore new ways to treat diabetes. With an increasing number of diabetic patients, Sanofi has zeroed in diabetic devices as its core business area, hoping to further its growth.
Inhaled insulin for diabetics is a more convenient than daily injections; however it still poses the risk of inhaling powdered insulin and affecting the lungs. Its acceptability is still unclear but if it is well-received then Afrezza, the inhaled insulin therapy, will be used for treatment of type 1 and type 2 diabetes in adults. Afrezza will be delivered through a whistle-sized inhaler and has been known to act more rapidly than routine injections. However, patients suffering from severe lung diseases should not use the inhaled insulin.
As per the agreement with MannKind Corp, Sanofi will receive rights to develop and market Afrezza, and it will be launch in the U.S. in the beginning of 2015. MannKind will get $150 million upfront and depending on the drug’s success, receive further payments of up to $775 million. The global profits and losses will be shared by both companies, with Sanofi incurring 65% of the results and MannKind the remaining 35%.
Sanofi ranks second in the global diabetes market and is valued at over $40 billion a year.